2023-12-11 18:15:10
Paris (AFP) – The Paris Stock Exchange closed up 0.33% on Monday, the market remaining on its positive trend while waiting to know the outcome of the meetings of the American and European central banks which are being held this week.
Published on: 11/12/2023 – 7:15 p.m. Modified on: 11/12/2023 – 7:13 p.m.
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The flagship CAC 40 index advanced 24.98 points to 7,551.53 points, less than 30 points from its absolute record reached in April. On Friday, the Parisian price climbed 1.32%, driven by luxury, and completed its fourth consecutive week of increase.
It is a “session of hesitation, of arms vigil, before two important meetings of the European and American central banks,” comments Alexandre Baradez, analyst at IG France.
High point of the macroeconomic agenda of the week, the American Federal Reserve (Fed) will announce its decision on Wednesday concerning the evolution of its key interest rates at the end of its meeting. Then, on Thursday, it will be the turn of the European Central Bank (ECB), the Bank of England (BoE) as well as the central banks of Switzerland and Norway.
The whole question is whether “the Fed will opt for a more restrictive tone than what the market anticipates,” emphasizes Alexandre Baradez.
The discourse from central banks is still at the stage of knowing whether to end the cycle of rate hikes which aims to combat inflation. But market operators are positioning themselves on the first cuts in the key rates of these monetary institutions.
“The market expects more flexible rhetoric from central bankers” but they “underestimate the capacity of central banks to let the economy cool,” estimates Alexandre Baradez.
While the Fed’s objective is to reduce American inflation to 2%, “we must remember that underlying inflation (excluding energy and food, Editor’s note) is at 4%” in the United States, continues -he.
On Tuesday, investors will look to the publication of the November consumer price index (CPI) in the United States, before that, on Friday, of the European and American services and manufacturing PMI indices, which reflect the state of private sector activity and manufacturing activity.
On the bond market, bond interest rates remained stable in Europe, while they rose in the United States, showing themselves to be more cautious than the stock markets, observes Alexandre Baradez.
The ten-year United States bond stood at 4.28% around 5:00 p.m. GMT, compared to 4.23% on Friday, and the two-year bond stood at 4.76%, compared to 4.72%.
Reprieve for Casino
The Paris commercial court has, unsurprisingly, extended until February 25 the accelerated safeguard period into which the Casino group (-1.40% to 71 cents) entered at the end of October, according to several sources interviewed Monday morning at the leaving an audience in Paris.
Carrefour announces a reorganization
The new executive director of the French branch of Carrefour (+0.64% to 17.30 euros), Alexandre de Palmas, in office since September, has undertaken an internal reorganization of certain management positions for implementation “at most early February 1, 2024”, according to an internal memo consulted Monday by AFP.
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