CAC 40: attention now turns to the Fed

(CercleFinance.com) - The Paris Bourse is set to open slightly higher on Wednesday, with a session packed with indicators, not forgetting the US Federal Reserve's announcements later this evening.


At around 8:15 a.m., the CAC 40 futures contract - June delivery - was up 26 points at 7816.5, suggesting a modest rebound after three consecutive sessions in the red.

Gaps could remain limited, however, as investors await US consumer price data ahead of Fed decisions.

While it is virtually certain that the US central bank will leave monetary policy unchanged, investors are concerned about what it will say about the pace of future rate cuts.

The Fed's new projections suggest that there will be fewer rate cuts this year, with only two, as opposed to the three previously anticipated.

While the US economy is currently doing rather well, it is still subject to headwinds, particularly in terms of inflation.

The Fed's announcements are expected at 8:00 p.m. (Paris time), followed by a press conference by Chairman Jerome Powell at 8:30 p.m.

The Federal Reserve's statement will be preceded at 2:30 p.m. by the release of U.S. consumer price index (CPI) figures, which are expected to show a slight slowdown in the pace of inflation.

We expect the markets to react rather favorably to today's events", said analysts at Danske Bank this morning.

In Europe, the session will be punctuated by the publication of the latest German inflation figures, followed by UK industrial production figures.

The day's busy agenda should enable investors to turn the page on the European elections and their heavy impact on the Old Continent's financial markets.

Yesterday, the Paris Bourse posted a second sharp fall, dropping more than 1.3% below the 7,800-point mark following a major sell-off in OATs.

Ten-year French bond yields eased back a little this morning to around 3.22%, narrowing the gap slightly with their German equivalent, which held steady at 2.62%.

Across the Atlantic, the bond market confirmed its upturn, with 10-year Treasuries yields easing to 4.40%.

Wall Street took the opportunity to set a new record last night, helped by the positive reception given to Apple's latest advances in AI (+7.2%).

Oil prices are back on the rise ahead of US crude inventories, due to be released in the afternoon.

Brent crude is up 0.6% at $82.4, while West Texas Intermediate (WTI) is up 0.7% at $78.5.

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