(News Bulletin 247) – The Paris Stock Exchange continues its rebound to 7,200 points this Monday at mid-session. Markets are still pricing in future rate cuts next year.
The Paris Stock Exchange begins the week as it ended it, that is to say in the green. With an increase of 0.26% at mid-session this Monday, the CAC 40 continues its rise over 7,200 points, to 7,252.45 points.
Last week, the flagship Parisian index recorded an increase of 2.7% driven by signs of slowing inflation whether in Europe or the United States. This caused a clear lull on the bond market. And this trend reflects investors’ hopes for the end of restrictive monetary policies next year.
The day’s agenda is sparse this Monday, both in terms of macroeconomics and businesses. Investors learned in the morning of an 11% decline year-on-year in producer prices in Germany.
The markets are therefore currently counting on a rate cut from the ECB in April, followed by that of the Federal Reserve in May and that of the Bank of England (BoE) in August, underlines Reuters.
Fed minutes in sight
“The hypothesis of a soft-landing, a soft landing of the economy, is reinforced with inflation under control. The American CPI (consumer price index, Editor’s note) actually reached +3.2% in year-on-year, against a forecast of +3.3%. In the process, the 10-year yield fell by 16 basis points (0.16 percentage point, Editor’s note) and expectations of a status quo at the meeting of the December 13 are now 100%”, underlines Antoine Fraysse-Soulier, head of market analysis at eToro.
However, some Fed officials wanted to calm the overwhelming enthusiasm of the markets, like Mary Daly and Susan Collins, who recently recalled that the battle against inflation had not yet been completely won.
In this context, the markets will be attentive to the minutes of the American Federal Reserve this Tuesday, before taking note of the October durable goods orders the next day. Note that Wall Street will be closed on Thursday for Thanksgiving celebrations, and stock trading on the New York Stock Exchange will only take place for half a session the next day, Friday November 24.
On the corporate side, investors will have their eyes on Nvidia which will publish its quarterly results Tuesday evening after the market.
The rebound in oil
Alstom is up 2.1%, while the struggling railway manufacturer could soon sell its 20% stake in Transmashholding, reports AFP citing press information.
On the foreign exchange market side, the euro is at 1.0925 dollars taking advantage of the weakness of the greenback, following expectations of a future rate cut by the American Federal Reserve. Oil prices rebound ahead of an important meeting of OPEC and its allies. The market anticipates further production cuts from Saudi Arabia, which pushes the barrel of Brent from the North Sea for delivery in January by 1.4% to 81.76 dollars, while the barrel of West Texas Intermediate (WTI) for delivery in December gained 1.5% to $77.16.
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