The Paris Stock Exchange fell 0.35% in early trading on Wednesday, as investors limited positions ahead of the conclusion of the US Federal Reserve meeting and following new sanctions proposals once morest Russia.
The star CAC 40 index fell 22.74 points to 6,453.44 points around 9:35 a.m. The day before, it had regained 0.79%.
Barring an regarding-face, the American central bank will increase its key rates to control skyrocketing inflation, a delicate battle far from being won with the risk of plunging the United States into recession.
The decisions and the press conference of the president of the institution Jerome Powell are expected following the closing of the European stock exchanges.
Market players have been anticipating the announcement of a half-percentage point hike for several weeks, the first of this magnitude since May 2000.
“It is possible that the Fed will become more aggressive” by providing for even steeper increases in the future, even warns Ipek Ozkardeskaya, an analyst at Swissquote bank.
The imminence of this tightening was still having repercussions on the bond market. The French 10-year rate continued to tighten, at 1.54% around 9:15 a.m., the highest since 2014. It was still only 0.2% at the start of the year.
In the followingnoon, investors are also awaiting the ADP report on private job creation in the United States, a prelude to the official employment report scheduled for Friday.
Aside from the Fed’s monetary tightening, the overall outlook for investors is unattractive, with China’s lockdowns and war in Ukraine still weighing on global growth prospects.
Brussels is proposing to exclude three additional Russian banks – including Sberbank, the country’s biggest institution – from the Swift international financial system, in retaliation for Russia’s invasion of Ukraine. The European Commission has also proposed a gradual EU embargo on oil and petroleum products purchased from Russia.
EDF remains limited by nuclear power
EDF announced on Wednesday a strong increase in its turnover in the first quarter thanks to the rise in electricity prices, while warning that this would not necessarily translate into the results while nuclear production is limited this year. The stock rose 0.21% to 9.61 euros.
Solvay benefits from rising prices
The Belgian chemical group published a net profit up 54% in the first quarter, to 369 million euros, driven by “record” sales and sharply rising prices. It took 4.71% to 93.74 euros on the expanded Parisian index.
