(News Bulletin 247) – The CAC 40 is stable at mid-session on Monday, at the start of a week during which the Fed meeting will be a highlight.

The Paris Stock Exchange is struggling to find a direction this Monday. The CAC 40 is hovering around its equilibrium point at 7,466.19 points, at mid-session.

Investors are dissecting the latest Chinese indicators which have been below expectations. “In China, the latest statistics on activity disappointed again in August. On the one hand, industrial production grew less than expected at 4.5% year-on-year, but above all, investment and consumption (via retail sales) were less robust than expected,” explains Sebastian Paris Horvitz of LBPAM.

“Thus, the lack of confidence continues to weigh on consumption and for investment, the continued contraction in real estate remains a huge brake,” he continues.

>> Access our exclusive graphic analyses, and enter the Trading Portfolio’s confidence

Rexel in the spotlight

The market is mainly preparing for the monetary policy meeting of the US Federal Reserve (Fed), which will take place on Tuesday and Wednesday. The American central bank will, barring an unlikely surprise, begin its cycle of lowering key rates. Investors are assessing the probabilities of a cut of 25 basis points (0.25 percentage points) and 50 basis points (0.50 percentage points).

“Retail sales and industrial production data due on Tuesday could potentially influence the Fed’s decision, with weak readings likely to trigger a 50 basis point rate cut,” said Mark Haefele of UBS.

In terms of values, tech groups are suffering a little on the CAC 40, with STMicroelectronics, Dassault Systèmes and Capgemini losing 1.9%, 1.6% and 1.4% respectively.

Outside the CAC 40, Rexel jumped 9.3% after refusing advances from the American group QXO. Virbac gained 6.2% driven by good half-year results.

Worldline continues to fall, dropping 9% after having already lost 14.4% on Friday following a new profit warning and the announcement of the departure of its CEO.

The euro is up sharply against the dollar, gaining 0.47% to $1.1128. Oil is up a little. The November contract on North Sea Brent is up 0.4% to $71.92 a barrel while the October contract on WTI listed in New York is up 0.6% to $69.07 a barrel.