CAC40: expected to remain stable as BoE and Fed meetings await

(CercleFinance.com) - The Paris Bourse is expected to start the day fairly stable, with futures on the CAC40 down six points to 7371.
The focus will be on monetary policy, with decisions by the Bank of England (BoE) in mid-session, followed by the Fed this evening.

In September, the Fed cut its key rates by 50 basis points, while suggesting that further cuts would be made at a more moderate pace", recalled Oddo BHF at the start of the week, judging a 25 bp cut on Thursday to be almost certain.

The political situation is not without consequences afterwards", he stressed, pointing to a greater risk of inflationary tensions in the event - since confirmed - of Donald Trump's victory in the presidential election.

"He has often criticized Jerome Powell and does not look kindly on the Fed's independence. Yet it is this independence that helps anchor inflation expectations at a low level", noted the research firm.

The Bank of England is also expected to announce a 25 bp rate cut today, the second this year after the one at the beginning of August, against the backdrop of British inflation falling below 2% in September.

In terms of statistics, German industrial production and eurozone retail sales for September are due to be released on Thursday, followed by a first estimate of US productivity for the third quarter.

On the Paris quarterly corporate publication front, investors can look forward to Engie, Legrand, Veolia, Valneva and SES this morning, as well as Teleperformance and Bénéteau on Wednesday evening.

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