The Paris Stock Exchange is stable on Monday, investors avoiding taking positions before knowing the outcome of the American presidential election and a few days before the next meeting of the American central bank (Fed).
The flagship CAC 40 index was unchanged (-0.01%) around 9:50 a.m., standing at 7,408.36 points (-0.49 points). On Friday, the Paris Stock Exchange increased by 0.80%, but posted a negative weekly balance sheet (-1.18%).
“The (US) elections are expected to monopolize attention over the next 48 to 72 hours, relegating other news, company results and even economic data to the background,” commented Spi AM analyst Stephen Innes. .
The American presidential election sees two radically opposed personalities pitted against each other and the outcome of the vote should be a close call according to various polls.
Furthermore, the winner of the presidential election will perhaps not yet be known when the meeting of the Fed's monetary committee begins on Wednesday morning, any more than when it ends at midday on Thursday and when the president of the The institution, Jerome Powell, will hold his press conference.
A quarter percentage point cut in Fed rates is widely expected. Its key rates would then fall into the range of 4.50-4.75%. A first rate cut was decided in September, for the first time since March 2020, by half a percentage point directly.
“A drop of” 0.25 points this week “is almost certain,” estimated Bruno Cavalier, chief economist of Oddo BHF.
On other markets, the greenback fell significantly by 0.52% against the single European currency, to 1.0890 dollars per euro, around 09:45 GMT.
The yield on 10-year government bonds stood at 4.30%, compared to 4.38% at the close on Friday. Its two-year equivalent, the most sensitive to changes in monetary policy, stood at 4.16% compared to 4.21%.
the interest rate on 10-year French government bonds reached 3.17%, unchanged from Friday's close.
Schneider separates from his CEO
On the Parisian stock market, the French electrical equipment giant Schneider Electric dropped 0.73% after announcing on Monday that it was terminating the duties of its general director for a year and a half, the German Peter Herweck, after “disagreements” on “the implementation of the roadmap” of the company which achieved record sales in the third quarter.
Frenchman Olivier Blum, 54, currently head of the group's energy management activity, succeeds him “immediately”, the company said in a press release.
Euronext CAC40
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