Stock market: CAC 40 holds its breath as Fed meeting approaches

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CAC 40 awaits US inflation data and Fed speech. The rise in long-term rates in France remains a concern, but markets are currently trying to stabilize.

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– Paris Stock Exchange.

follow her Emmanuel Macron’s press conference after the dissolution of the National Assembly with capital.

World stock markets are next to move in scattered order on Wednesday, May 12 communication the American Central Bank (Fed) on its monetary policy and the inflation indicator in the United States, while Europe always remains attentive to political developments in France. In Asia, Hong Kong was down 1.39% in last trade. Shanghai gained 0.31% and Shenzhen 0.08%, while Tokyo lost 0.66%.

“PUSH currency meeting of the US Federal Reserve System (Fed) is on the center of all attention»Natixis analysts comment. “Although no changes are planned, Jerome Powell’s speech”Fed Chairman could enlighten us orientation the future of politics monetary policy of the US institution, they continued. Before hearing from the Fed at 6.30pm, the market will get US inflation data at 12.30pm. “The market is waiting for confirmation that inflation is not accelerating again, although it remains too high, and that the Fed is still counting. bottom its rates until the end of the year”explains Xavier Chapard, strategist at LBP AM.

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In Europe, after two consecutive sessions in the red, the major indexes started again forward : around 7:45 GMT, CAC 40 profit 0.47%Frankfurt 0.65%, London 0.64% and Madrid 0.47%. “The political situation in France creates a very uncertain which should cause volatility in the markets”points out Xavier Chapard.

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On Sunday, after the landslide victory of the far-right National Assembly party in the European elections, the dissolution of the National Assembly, decided by Emmanuel Macron, was like a thunderbolt. In this context, early parliamentary elections, which will be held from the end of June, leave a high probability of the entry of the extreme right into the government. This perspective worry markets as to the implications this could have on French debt.

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A complex budget for 2025

“It’s empowering risks on public finances, when the preparation of the budget for 2025 was already complicated”continues strategist LBP AM In this climate “French 10-year yield continues to rise”, commented Ipek Ozkardeskaya, an analyst at Swissquote Bank. In bond markets around 7:35 a.m., France’s 10-year government bond yield was at 3.21%, up from 3.23% at Tuesday’s close, and its German counterpart was at 2.60%, up from 2.62%.

During the previous day’s session, the gap between French and German rates, an indicator that measures investor confidence in the country, widened to record level since 2020. In the currency market, a day after clear gains on European political uncertainty, the dollar was steady against the euro at $1.0740 per euro around 7:35 a.m.

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Crédit Agricole is reflected in the stock market

French bank Crédit Agricole climbed 3.13% after two sessions in sharp decline. Analysts at Jefferies raised their buy recommendation, according to a note published overnight Tuesday and Wednesday, which estimates the market has ” he reacted in a certain way excessive to the results of the European elections and early parliamentary elections in France.

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Car trunk gas spring specialist Stabilus (-15.3% in Frankfurt) deepened its losses in early trading after it cut its financial targets for the current financial year amid a slowdown in the auto sector. Stocks in the automotive sector autumn in Germany: Volkswagen fell by -1.44%, BMW by -1.01% and Mercedes-Benz by -0.98%.

The price for a barrel of Brent from the North Sea for delivery in August stood $82.35 (+0.52%) around 7:35 a.m. and a barrel of US West Texas Intermediate (WTI), due in July, was up 0.71% at $78.45. Bitcoin gained 0.13%. 67,368 dollars.

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