(News Bulletin 247) – The CAC 40 is slightly up at mid-session on Tuesday, showing a wait-and-see attitude ahead of the week’s major events. A member of the ECB judged that the economic situation argued more for rate cuts in September.
The CAC 40 is slowing down but is not stalling. The Paris index is up 0.1% at mid-session on Tuesday to reach 7,510.44 points, after already having chained together five consecutive sessions of increases.
The market is moving into somewhat of a wait-and-see mode, awaiting the next events of the week. The “minutes” (report) of the last monetary policy meeting of the American Federal Reserve (Fed) will be published Wednesday evening. On Friday, the chairman of the American central bank, Jerome Powell, will speak at the Jackson Hole symposium in Wyoming.
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Towards a new rate cut from the ECB?
“The Fed chairman will likely acknowledge that with inflation falling and economic activity slowing in the US, the conditions are ripe for a rate cut. However, traders will be closely analyzing his remarks, looking for clues about how aggressively the Federal Reserve will begin the rate-cutting cycle,” said Ricardo Evangelista, an analyst at Activtrades.
On the European Central Bank side, Olli Rehn, a member of the institution’s governing council, made accommodating remarks on Monday evening.
The governor of the Bank of Finland said recent risks to euro zone growth strengthened the case for a rate cut at the euro zone central bank’s next meeting next month, Bloomberg reported.
In terms of values, the members of the CAC 40 are changing very little, with the biggest increase, Accor, at 1.9% while the most marked decline, of 1%, is recorded by Orange.
Outside the CAC 40, Voltalia fell by 16.8%, after warning that production cuts in Brazil would penalize its gross operating profit in 2024.
On other markets, the euro fell by 0.1% against the dollar to 1.1077 dollars. Oil showed little change. The October contract on North Sea Brent was stable at 77.67 dollars per barrel while the September contract on WTI listed in New York fell by 0.1% to 74.29 dollars per barrel.
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