Customers do their shopping in a supermarket in La Verrie
PARIS (Archyde.com) – The main European stock markets rose at the start of the session on Wednesday, as investors took note of the slowdown in French inflation before the publication of the minutes of the last monetary policy meeting of the Federal Reserve.
In Paris, the CAC 40 gained 1.21% to 6,703.87 points around 08:30 GMT. In London, the FTSE 100 takes 0.15% and in Frankfurt, the Dax advances by 1.16%.
The EuroStoxx 50 index is up 1.22%, the FTSEurofirst 300 0.6% and the Stoxx 600 0.88%.
After Tuesday’s announcement of a welcome deceleration in inflation in Germany, the market welcomes the publication by INSEE of a slowdown in the pace of inflation over one year in December in France.
This information is considered all the more reassuring as it comes in the context of the rapid rise in central bank interest rates, which are supposed to stem the surge in prices at the risk of causing a recession.
Bond yields in Europe fell sharply: those of the OAT and the ten-year Bund fell to their lowest level for two weeks, at 2.789% and 2.274% respectively.
Investors will watch with interest at 19:00 GMT the minutes of the Fed’s monetary policy meeting in December, following which the US central bank raised rates by 50 basis points and indicated that rates might remain raised longer than expected.
Before that, they will follow in the morning the final results of the monthly surveys of S&P Global among purchasing managers in the services sector and then the manufacturing ISM in the United States in the followingnoon.
The European energy index (-1.99%) shows the largest drop due to the decline in oil prices, players in this market worrying regarding the economic outlook and the health crisis in China.
TotalEnergies (-2.02%) is the bottom of the CAC 40 and BP (-3.11%) of the Footsie.
Dassault Systemes, Legrand, Schneider Electric shares gained 1.61% to 2.61%, supported by board upgrades from Bernstein.
(Laetitia Volga, editing by Kate Entringer)
