The Cac 40 is expected to be stable at the start of the week marked by the publication of the inflation index favored by the Federal Reserve. The market will monitor the Ifo index in Germany this Monday.
The Paris Stock Exchange is expected to be close to balance this Monday, in the wake of a mixed session on Wall Street where profit-taking weighed on the technology sector. Nvidia lost more than 3% on Friday and 4% over the week, “ for… no reason other than the fact that it was almost the end of the month, quarter and first half, and investors preferred to take profits while already repositioning themselves for the new half rather than buying more of Nvidia shares at a very high valuation (…) no one really knows at this point if he deserves a higher price », argues Ipek Ozkardeskaya, analyst at Swissquote Bank.
The PCE, the flagship event of the week
Higher-than-expected data from the US services sector proved once again that the world’s largest economy is in good shape. The next major indicator to come is the personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge, which could play a key role in the central bank’s monetary policy plans. Annual growth in the core index, which excludes energy and food prices, is expected to have slowed to 2.6% in May, the lowest rate in more than three years. “ Note that the weak results of the PCE deflator are necessary to prevent the y/y rate from increasing during this year, given the series of weak prints in the second half of 2023 “, warned NAB analysts. A weak result on Friday would likely reinforce expectations of a Fed rate cut as early as September, a prospect currently assessed at 59.5% according to the FedWatch tool developed by CME Group.
Before that, the Ifo institute will have unveiled, this Monday at 10 a.m., its business climate index for April across the Rhine.
Valneva scores a point in Canada
Pure politics will also be on the menu of the week with the first debate, Thursday, between the two main candidates for the American presidential election, Joe Biden and his Republican opponent Donald Trump, and the last between the British Prime Minister Rishi Sunak and the leader of the Labor Party Keir Starmer before the legislative elections on July 4. The first round of legislative elections in France takes place on Sunday and the National Rally consolidates its position as favorite in opinion polls. According to the Ipsos/Le Parisien/Radio France poll, the far-right party, allied with Republican elected officials in 62 constituencies, received 35.5% of voting intentions in total.
On the business side, Valneva’s single-injection vaccine for the prevention of disease caused by the chikungunya virus in those over 18 years of age has been approved by the regulatory agency Health Canada.
