(News Bulletin 247) – The CAC 40 is moving sharply higher at mid-session this Wednesday as Jerome Powell, the Fed chairman, is set to speak for a second time this afternoon.
The CAC 40 is back in shape this Wednesday. After dropping 1.56% the day before, the Paris index is up 0.89% at mid-session at 7,575.50 points.
The market was able to discern some reasons for satisfaction in the remarks of the Chairman of the Federal Reserve (Fed), Jerome Powell. Speaking Tuesday afternoon before a committee of the American Senate, the central banker declared that maintaining an excessively restrictive monetary policy “could unduly weaken economic activity and employment” and that “the conditions of the labor market have now cooled considerably”, notes Deutsche Bank.
“There has therefore been a recognition of the risk of waiting too long,” the German bank concluded. Jerome Powell will speak again on Wednesday, this time before a committee of the House of Representatives. But his speech is unlikely to change much.
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Almost total green on the CAC 40
Investors are obviously also continuing to monitor the political situation in France, where discussions are continuing following the results of the legislative elections.
“The absence of a clear majority – and even a possible natural coalition – prolongs political uncertainty and leaves the budgetary outlook degraded. This should maintain a premium on French debt and the assets most linked to political risk in France,” judges Xavier Chapard, strategist at LBPAM.
In terms of values, the entire CAC 40 is moving in the green, with Michelin as the only exception (-0.26%).
At the level of the smallest capitalizations, Adocia lost 3% after announcing the end of a partnership with a Chinese group.
On other markets, the euro is stable against the dollar at $1.082. Oil is advancing slightly. The September contract on North Sea Brent is up 0.2% at $84.83 per barrel while the August contract on WTI listed in New York is up 0.3% at $81.68 per barrel.
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