(News Bulletin 247) – The Parisian index rose mid-session this Wednesday, the market continuing to be optimistic about monetary policy.
The CAC 40 continues its rise. The Parisian index gained 0.38% at mid-session to 7,415.29 points, returning above 7,400 points. He is only a few steps away from his historic session record, namely 7,581.26 points.
The market continues to show a certain optimism about the evolution of the key rates of the major central banks, with investors now phosphatizing on the number of reductions for 2024 from the American Federal Reserve (Fed) and the Central Bank European Union (ECB). Particularly after ECB board member Isabel Schnabel told Reuters on Tuesday that rate hikes were now “unlikely” given falling inflation in the eurozone.
“The idea of a reduction in interest rates continues to gain momentum, which has led to a further rise in bonds over the last 24 hours on both sides of the Atlantic,” underlines Deutsche Bank. In fact, the value of bonds and rates vary mechanically in the opposite direction (when rates fall, the value of bonds rises and vice versa).
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Rémy Cointreau weighed down by UBS
In the United States, the number of vacant jobs has fallen significantly, falling to its lowest level since the start of 2021, according to data published on Tuesday. “The slowdown in the American job market is good news for the Fed. It suggests that wage and inflationary pressures will continue to normalize if rebalancing continues,” explains Xavier Chapard of LBPAM.
The market is now awaiting, Wednesday afternoon, the report on American employment from the private firm ADP, which constitutes a prelude to the official figures which will be published Friday afternoon.
On the value side, Rémy Cointreau lost 2.8% while the bank UBS lowered its advice from “buy” to “neutral”.
On the smaller values side, Catana fell by 6.9% after publishing significantly lower profitability over its entire 2022-2023 financial year, due to inflation and logistical concerns.
On other markets, the euro lost 0.1% against the dollar to $1.079. Oil prices are falling. The February contract on North Sea Brent fell 0.9% to $76.52 per barrel while the January contract on WTI listed in New York lost 1.1% to $71.52 per barrel.
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