(News Bulletin 247) – The CAC 40 is moving in the red at mid-session this Tuesday, while the market awaits inflation figures in the United States later in the week. Investors are also keeping an eye on Taiwan a few days before a high-tension presidential election.
Still in poor form for the CAC 40 this Tuesday, while the agenda remains very thin. The Parisian index dropped 0.36% to 7423.72 points at mid-session.
The weak presence of the technology compartment within the CAC 40 prevents the index from following in the footsteps of Wall Street, where the Nasdaq Composite finished up 2.2% Monday evening. Investors are especially waiting this week for the publication of the consumer price index in the United States, the main measure of inflation, which will be published on Thursday.
In the meantime, the market is monitoring the statements of central bankers. Raphael Bostic, the president of the Federal Reserve (Fed) of Atlanta, although known as one of the most dove-like members of the Fed, that is to say more focused on preserving employment and less on controlling inflation at all costs, judged that the Fed’s rate cuts will only occur in the third quarter. However, according to the CME Group’s FedWatch tool, the market anticipates a Fed rate reduction as early as March.
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STMicroelectronics weighed down by Samsung
Investors are also keeping an eye on Taiwan where a presidential election will take place this weekend. A few days before this election, the Taiwanese authorities issued an official alert message following the launch of a Chinese satellite flying over the country’s airspace. Which is seen as an attempt at intimidation by Taiwan.
On the value side, STMicroelectronics dropped 2.4% weighed down by the warning on results from a major contractor in the semiconductor sector, Samsung, and by another “profit warning”, that of the American Microchip Tech.
Trigano rose 3% after publishing a robust increase in its revenues in the first quarter of its staggered 2023-2024 financial year.
Nexans advances by 3% driven by an initiation of purchase hedging from Berenberg.
Dassault Aviation for its part gained 2.4% after announcing the entry into force of the last tranche of 18 Rafale planes ordered by Indonesia.
On other markets, the euro fell 0.17% against the dollar to 1.0932 dollars. Oil is rebounding, driven by supply tensions, particularly geopolitics. Lebanese Hezbollah announced that it had targeted a command center in northern Israel. The North Sea Brent contract for March advanced 1.9% to $77.53 per barrel while the February contract for WTI listed in New York advanced 1.8% to $72.13 per barrel.
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