The Paris Stock Exchange is playing in the green on Monday, at the start of a session without a major meeting, surfing on an increased probability of a drop in rates of the American Federal Reserve (Fed) in the wake of a report on disappointing employment in the United States.
Around 9:40 am (Paris time), the star index took 0.76% to 7,603.14 points, up 56.98 points.
Friday, the Parisian star index dived by 2.91%, after the announcement of an unemployment rate in July in the United States, signs, according to some investors, that Donald Trump’s protectionist policy begins to lead the world’s leading economy.
But now, the markets take the news on the right side: this expected slowdown increases the possibility that the Fed soon drops its interest rates to revive activity, which is positive for shares. The next Fed meeting will take place in mid-September.
“Investors seem to favor this optimistic reading of the situation, focusing on the increase in the opportunities for a next monetary easing,” said John Plassard, head of the investment strategy at Cité Gestion Private Bank.
“The probability of a decrease in rates of the Federal Reserve (Fed) in September increased from 38% to more than 80%” in analysts’ expectations, noted Ipek Ozkardeskaya, analyst at Swissquote Bank.
Apart from these considerations, the session promises to be calm, the season of business results being almost finished. Exchange volumes are generally very low in August on the markets.
The results, for the 39 companies out of 40 (from the CAC 40 index in Paris) having presented their results in the past few weeks, is a net profit accumulated at 51.8 billion euros, down 28% compared to the first half of 2024.
The cumulative turnover is 827.6 billion euros, slightly 1%. The period was marked by uncertainty about customs duties imposed by Donald Trump on European companies. The euro appreciated strongly against the dollar, plumming the exporters.
On the bond, the French loan rate at ten years reached 3.35%, at the same level as Friday at the end.
Bonduelle grows
The French specialist in preserved vegetables (+5.31% at 8.33 euros) confirmed on Friday his objective of current operational profitability, “thanks to the pursuit of the recovery of North American activities, the good performance of Eurasia activities and a strict cost control program”, according to a press release.
Euronext CAC40
Posted on August 4 at 9:56 am, AFP
