The Paris Stock Exchange is sluggish on Thursday, in a session without a major meeting and in the absence of American investors due to a public holiday in the United States, on the eve of a report on American employment.
Around 10:10 a.m., the flagship index of the Paris Stock Exchange, the CAC 40, was standing still (+0.03%), gaining 2.10 points to 7,454.52 points. On Wednesday, it ended down 0.49% at 7,452.42 points.
On Thursday, American markets were closed due to a day of national mourning declared for the death of former President Jimmy Carter. In the absence of Wall Street, which usually sets the tone for other financial centers around the world, “the session should be quite calm”, comments Jim Reid, economist at Deutsche Bank.
Investors continue to question Donald Trump’s political intentions regarding the customs duties he wishes to implement. On Wednesday, global markets reacted poorly to the publication of a CNN article according to which Trump would consider declaring a state of economic emergency to quickly increase these duties.
They are also digesting the publication of the minutes of the last December meeting of the American central bank (Fed).
The report “clearly indicated that upcoming policy changes in the United States on immigration and trade could require a monetary decision on the part of the Fed”, i.e. a reduction in its interest rates, underlines Ipek Ozkardeskaya, analyst at Swissquote Bank.
The report refers, without citing it, to the return to the White House on January 20 of Donald Trump, who wishes to implement customs duties of 10 to 20% on all products entering the United States, even going up to 60 or 100% for those from China. He also vowed to deport around 13 million irregular migrants.
These political changes, considered inflationary in nature, push Fed members to estimate that the disinflation process could take longer than expected.
And “many participants suggested that several factors favor a cautious approach to monetary policy decisions in the coming quarters,” according to this report.
These comments immediately reassured market players in the idea that the Fed would not touch its rates at its next meeting, on January 28 and 29.
The American central bank is only considering two rate cuts for 2025, of a quarter of a point each.
In this context, investors are cautiously awaiting the publication on Friday of statistics on employment in the United States in December, likely to guide expectations on the Fed’s monetary policy.
New CEO at Dassault Aviation
The CEO of Dassault Aviation (-0.19% to 205.80 euros) Eric Trappier took over Thursday as president of the industrial group Marcel Dassault (GIMD), replacing Charles Edelstenne, historic pillar of the family empire, announced the group in a press release.
The appointment of Mr. Trappier was announced in February by the Dassault family holding company. He will also retain his position as CEO of Dassault Aviation, the group said.
Euronext CAC40
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