2023-08-16 08:52:11
The main CAC 40 index advanced by 0.43% around 10:30 GMT, to 7,297.28 points. On Tuesday, the index had dropped 1.10% to 7,267.70 points, disappointed by Chinese economic indicators and by China’s deemed weak support for its economy, which has struggled to restart since the Covid-19 pandemic.
On Wednesday, the market welcomed without much surprise the inflation figures in the United Kingdom, which showed a marked slowdown in July, to 6.8% over one year once morest 7.9% in June.
The brake on British inflation, which remains the highest of the G7 countries, was “widely expected for July”, given the reduction in energy prices decided by the British authority for the sector, notes Alpesh Paleja, economist for the CBI, the main employers’ organization in the country.
However, economists note that strong wage growth points to further interest rate hikes by the Bank of England.
At 09:00 GMT, the markets will be attentive to the publication of the second estimate of GDP (Gross Domestic Product) in the euro zone for the second quarter.
In terms of central banks, it is the US Federal Reserve (Fed) that captures the attention of investors.
The minutes of the last meeting of the American monetary institution will be published on Wednesday and should “show that its officials remain cautious, despite the latest drop in inflation” in the United States, adds Ipek Ozkardeskaya, analyst at Swissquote Bank.
Moreover, on Tuesday following the close of markets in Europe, a member of the Fed said that it was still too early to claim victory over inflation and put an end to the cycle of rising interest rates, while recognizing that inflation was now moving in the right direction.
“I’m not ready to announce that we’re done, but I see positive signs,” Minneapolis branch president Neel Kashkari said at a conference in the northern US city.
The Fed might, he said, start lowering its main rate in 2024, if the deceleration in inflation is confirmed.
Maurel & Prom leaps
The French hydrocarbon producer Maurel & Prom jumped more than 10% to 4.46 euros around 10:30 a.m. following announcing the takeover of the oil company Assala Energy, active in Gabon, for an amount of 730 million dollars.
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