The Paris Stock Exchange should continue its upward movement on Wednesday in the hope that a series of indicators expected during the session will confirm the trend of a marked slowdown in inflation.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – delivery at the end of January – nibbles three small points to 7083 points, suggesting a rather positive start to the session.
After a brief foray beyond 7100 points yesterday afternoon, the Parisian market had erased some of its gains to end the session with an increase of 0.5% to 7077 points.
The CAC 40 index – which has maintained an upward trend since the start of the year which has allowed it to climb more than 9% in 12 sessions – has thus overcome a new level of resistance, at 7030 points.
‘There are countless levels of increases reached or overwhelmed since the first eleven sessions of the year, only one of which ended in negative territory’, recall the graphic analysts at Kiplink.
According to Professionals:
According to professionals, the achievement of the target level of 7085 points – now far too close not to be tested – would constitute the rapid achievement of a first medium-term objective.
However, the trend could change today after the publication of a series of indicators, including several key measures of inflation on both sides of the Atlantic.
In the United States, the rise in producer prices is expected below the 7% threshold, a first since spring 2021 under the effect of the fall in energy prices and the normalization of production chains.
In the United Kingdom, the respite in energy prices should make it possible to moderate inflation a little, which should nevertheless remain in double digits.
Investors will also take note of the final figures for consumer prices in the euro zone for the month of December.
New York Stock Exchange
Yesterday, the New York Stock Exchange was weighed down by the fall in Goldman Sachs shares following a disappointing fourth quarter publication that prompted investors to take some profits.
If the Dow Jones dropped more than 1.1%, the Nasdaq Composite managed to grab more than 0.1%.
Futures on New York indices are currently signaling a slight rebound at the opening on Wednesday, with gains of between 0.2% and 0.3%.
Despite the recovery of European equities, bond yields eased, with a decline towards 2.08% for the ten-year German Bund and a drop of the same magnitude for French OATs.
On the currency market, the euro strengthened above 1.08 against the dollar.
Prices on the oil market are little changed pending the publication, tomorrow, of weekly stocks in the United States, the barrel of American light crude oil currently rising by 1.1% to 81.1 dollars.
This article is originally published on zonebourse.com