The week begins on a positive note for the Paris Stock Exchange. After a dive of almost 3 % on Friday, the CAC 40 displays a rebound of 0.76 % at the opening. According to analysts, this would be carried by a renewed optimism on the Fed policy. A reversal that questions: could the American slowdown finally benefit the financial markets? Analysis.
In short
- The Paris Stock Exchange rebounds thanks to the anticipations of a drop in rates by the Fed.
- Despite declining profits, investors remain confident in the face of favorable monetary signals.
The Parisian scholarship boosted by hopes of lower rates
Investors now see in the American unemployment report a catalyst for hope. With an increase in the unemployment rate in the United States In July, the markets indeed anticipate a possible turning point in the monetary policy of the Fed.
Result: the probability of a drop in interest rates in September rose from 38 % to more than 80 %.
For operators, this expected relaxation is a boon. Indeed, a drop in rates Makes more attractive actions in a context where market volatility has recently strengthened risk aversion.
Disappointing results, but a renewed confidence on the scholarship
Despite a global economy still under tension, the Assessment of listed companies is not as dark as expected. Out of 39 CAC 40 companies, the quarterly results display a cumulative net profit of 51.8 billion euros. This shows a decline of 28 %. As for the yield, it remains under pressure because of the strong euro and the tensions linked to the American customs duties.
However, the scholarship already anticipates an lull. Even the 10 -year -old French loan rate remains stable at 3.35 %. Which reports a reassured market. In this context, the eyes are now riveted on the Next Fed meeting in mid-September.
In any case, the scholarship could initiate a bullish cycle if optimism continues (and this, despite the uncertainties on public debt or geopolitics). The month of August promises to be decisive.
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