(News Bulletin 247) – The Paris Stock Exchange is moving forward this Monday as the ECB’s chief economist suggested that a rate cut next month was likely.
The Paris Stock Exchange must deal this Monday with absent investors, across the Channel and across the Atlantic. Both Wall Street and the London Stock Exchange are, in fact, closed due to a public holiday.
The CAC 40, however, is gaining some ground, gaining 0.17% at mid-session, to 8,108.91 points.
As the major central banks’ monetary policy meetings approach, the European Central Bank’s (ECB) chief economist Philip Lane has weighed in, speaking to the Financial Times.
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The central banker implicitly indicated that the European institution was ready to reduce its rates next month, while warning that it would still need to maintain a restrictive monetary policy. “Barring any major surprises, at present, the elements at our disposal allow us to lift the highest level of restrictions,” said the economist, according to comments reported by Reuters.
Investors are also taking note of the publication of the Ifo index which measures the morale of German entrepreneurs. In May, this index remained unchanged at 89.3 points.
“Overall, the climate indicators available so far continue to point to a spring recovery in the German economy. The current Ifo data, however, calls for a little patience,” emphasizes Marc Schattenberg, economist at Deutsche Bank.
Alstom stands out
On the stock side, Alstom rose 4% after announcing the launch of a capital increase of 1 billion euros which should enable it to complete its 2 billion euro debt reduction plan.
On the CAC 40 the variations are very contained, since the largest increase amounts to 1.8% (Teleperformance) while the largest drop is only 0.8% (STMicroelectronics).
On other markets, the euro gained 0.2% against the dollar to 1.0868 dollars. Oil is moving forward a little. The July North Sea Brent contract rose 0.5% to $82.30 per barrel, while the New York-listed WTI contract gained 0.6% to $78.15 per barrel.
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