(BFM Bourse) – The CAC 40 is moving up sharply in mid-session on Wednesday as investors await the US Federal Reserve’s decision on its key interest rates on Wednesday evening.
The stock exchange in Paris releases the handbrake. The CAC 40 rose 0.8% to 7351.26 points mid-session on Wednesday.
The market is optimistic that the US Federal Reserve (Fed) will announce a pause in its cycle of raising key interest rates on Wednesday evening before considering an increase at its next meeting.
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“Overbought” stocks?
“In the United States, inflation figures for the month of May supported the idea that the Fed should take a break in its monetary policy tightening campaign. In fact, the statistics confirmed the continuation of decelerating inflation, although in addition to the significant contribution of energy to the inflation drop, so-called core inflation by slowing down”, notes Sebastian Paris Horvitz, of La Banque Postale Asset Management.
In light of this break, markets have moved for several sessions with a clear upward trend, especially in the US.
“Despite the near confirmation of this break, which is very widely expected, risk appetite has strengthened again. The strength of the US market’s progress in recent weeks clearly puts it in an overbought situation”, emphasizes Sebastian Paris Horvitz.
It should be noted that the British economy surprises positively. UK GDP rose 0.2% in April after falling 0.3% in March, according to Office for National Statistics (ONS) data released on Wednesday.
Casino has never carried its name so well in the stock market
In terms of values, Casino jumped by 16% after the trio Niel-Pigasse-Zouari offered the group a recapitalization of up to 1.1 billion euros, the same amount as the offer of the man.businessman Daniel Kretinsky.
Orpea rose 18% with no particular announcement seeming to justify this rise. “It has become a retail value”, that is, taken from small owners, an analyst remembers anyway.
The renewed appetite for risk benefits cyclical stocks, especially Renault, which gains 4%, ArcelorMittal, which gains 2.8% or Stellantis, which rises 2%.
Elsewhere, the euro rose 0.1% against the dollar to $1.0808. Oil prices are rising. The North Sea Brent contract for August delivery gained 1.5% to $75.39 a barrel. barrel, while the WTI contract listed in New York rose 1.4% to $70.39 a barrel. barrel.
Julien Marion – ©2023 BFM Bourse