The Paris Stock Exchange cautious before inflation indices expected at the end of the week – 05/28/2024 at 09:58

The Paris Stock Exchange cautious before inflation indices expected at the end of the week – 05/28/2024 at 09:58
The Paris Stock Exchange cautious before inflation indices expected at the end of the week – 05/28/2024 at 09:58

The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)

The Paris Stock Exchange appears hesitant on Tuesday, awaiting the publication of inflation data in Europe and the United States at the end of the week.

Around 9:40 a.m., the flagship CAC 40 index dropped 0.15%, or 12.17 points to 8,119.25 points. On Monday, the flagship index gained 37.52 points (+0.46%) to 8,132.49 points.

On Friday, “the European inflation figures for May will be published as well as the American PCE” and “until then, it will be necessary to follow the numerous interventions of central bankers”, comment Natixis analysts.

The PCE inflation index in the United States will be particularly scrutinized by the markets, being the preferred inflation measure of the American central bank (Fed).

For the European Central Bank (ECB), these data are also important, with the market expecting the monetary institution to announce the first cut in its key rates since the start of its monetary tightening cycle which began in 2022. from its next monetary policy meeting, which will be held on June 6.

“The next steps are less clear for the ECB, with markets expecting policymakers to take a break in July and resume reductions in September,” explains John Plassard, investment specialist for Mirabaud.

“The governor of the Bank of France (François Villeroy de Galhau) indicated that we should not underestimate the possibility of a rate cut by the ECB in July while the market fully anticipates a break this month after the cautious speeches of a large part of the members of the Board of Governors”, underlines the Natixis note.

For Ipek Ozkardeskaya, analyst at Swissquote Bank, “if inflation in Europe accelerates, the ECB will not be able to afford two consecutive rate cuts.”

Atos nuclear activities under control

The Minister of the Economy, Bruno Le Maire, announced on Tuesday his intention to place under state control the control and command activities of French nuclear power plants currently owned by the struggling French IT giant Atos and deemed “strategic” .

The stock gained 0.90% to 2.01 euros.

Euronext CAC40

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