The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / Eric PIERMONT)
The Paris stock exchange rose 0.63% on Wednesday morning, as investors await arbitration from the US central bank, the Fed, on its future rate of monetary tightening.
The CAC 40 stellar index rose 40.36 points to 6,368.99 points around 10:00. Tuesday, All Saints Day, it had gained 61.48 points to 6,328.25 points, after a session with relatively low trading volumes.
Investors will review the decision of US Central Bank officials, meeting since Tuesday morning. The Monetary Policy Committee (FOMC) will announce its decision on Wednesday at 18:00 GMT, then its chairman Jerome Powell will hold a press conference at 18:30 GMT.
If a new 0.75 point hike is very widely anticipated by the markets, they will be particularly attentive to the Fed’s future orientations, because they estimate “that the pace of the hikes should slow down during the next few meetings”, explains Steve Englander, head of macroeconomics. US for Standard Chartered and former Fed economist.
But “for now, the US labor market is not shrinking and US inflation is not easing … There is therefore no reason for the Fed to announce the end of the tightening cycle, which would trigger a positive euphoria. in equity and bond markets and would increase both inflation and employment in the US, “said Swissquote analyst Ipek Ozkardeskaya.
And while Jerome Powell has provided indications of an imminent reduction in the magnitude of rate hikes, “he certainly cannot promise when and where the tightening will stop,” continues the analyst.
In parallel, the presidents of the central banks of Germany and Spain in a joint interview stated that the European Central Bank (ECB) will continue to raise interest rates to curb record inflation in the euro zone.
“I am convinced that this will not be the end of rate hikes,” said Joachim Nagel, chairman of the influential Federal Bank of Germany, in an interview with the German newspaper Frankfurter Allgemeine Zeitung.
On the bond market, the interest rate on the French ten-year loan stood at 2.6% and remained stable compared to the previous day.
Luxury continues to drive
Luxury stocks, which pulled up the Paris stock exchange the day before, continued their momentum on Wednesday. LVMH gained 1.11% at 658.30 euros, Kering 1.23% at 482.30 euros, Hermès 1.19% at 1.366 euros and L’Oréal 0.69% at 319, 70 euros.
Imerys plunges into the stock market
Industrial Minerals Group Imerys posted strong sales growth in the third quarter, but due to the war in Ukraine, blockades in China and a weak automotive sector, sales volume decreased 4.3% in the first nine. months.
The stock lost 5.73% to € 39.48 around 9:40 am.