Much hesitation in sight at the Paris Stock Exchange, while waiting, of course, for the big Jackson Hole meeting at the end of the week, and its meeting with the main fundraisers of the planet. From Thursday evening, the main heads of central banks, finance ministers and renowned economists will meet in this valley in the western state of Wyoming for the event organized by the Fed Kansas to discuss the state of the economy and monetary policy.
But this year, ” Jackson Hole could have a bigger impact on investors’ moods than usual, as they don’t really know where the market is going. The market does not really know where the Fed is going », estime Ipek Ozkardeskaya, de Swissquote.
July’s stock market rally was primarily triggered by anticipation that the US Federal Reserve might ease policy and start cutting interest rates if the US economy slips deeper into recession. But nothing, in fact or in words, suggests that any rate cut could point in the coming quarters.
Quite the contrary. Members of the Fed have come and gone in recent weeks to confirm the institution’s proactive policy, saying that monetary conditions will tighten until there are tangible signs of a return to the inflation target of 2 % are noticeable. The greatest attention will therefore be paid to the intervention of the President of the Fed, Jerome Powell. It will be Friday at 4 p.m. Paris time.
New intervention in Chine
In the meantime, the Paris Stock Exchange is expected on an almost stable note this morning, the Cac 40 future contract suggesting a symbolic decline of 0.25% of the flagship index. New York ended down Friday, 0.86% for the Dow Jones and just over 2% for the Nasdaq Composite. Asia evolves in a dispersed order. We note a new intervention by the Chinese central bank, which lowered its one-year key rate by 5 basis points, to 3.65%, and its five-year rate by 15 basis points, to 4.3%
The program of the day is almost empty. We will content ourselves with the Chicago Federal Reserve’s national activity index, which came out at -0.19 points for the month of June. No impact to be expected on the market.
Few news also on the corporate front. BioMérieux announced that the Food and drug administration, the US health authority, has granted the “Breakthrough device” designation, or “Innovative device”, its rapid Specific Reveal antibiogram system. Already marketed in Europe, it provides a phenotypic antibiotic susceptibility test allowing treatment to be chosen during the day for patients suffering from bacteremic sepsis, a rapid and dangerous infection.