(CercleFinance.com) – The Paris Stock Exchange should continue its timid rebound from the day before on Tuesday morning, even if initiatives should remain limited pending a signal from Wall Street.
Around 8:15 am, the futures contract on the CAC 40 index – due July – gained 22 points to 5924 points, announcing the start of the session in positive territory.
The Paris market ended Monday’s session with a gain of 0.6% after a session marked by low trading volumes due to the closure of New York for ‘Juneteenth’, a new holiday commemorating the end of slavery.
This morning, the main European stock markets seem determined to evolve without much change while waiting for the reopening of Wall Street, whose orientation could give direction to the market.
The question of knowing whether the places of the Old Continent can make a real recovery will of course depend on how the American markets behave.
Investors have reacted unfavorably in recent weeks to the Fed’s tightening of monetary policy, fearing that the US central bank will ‘overreact’ by pushing the US economy into recession in order to curb inflation.
But some strategists believe the severity of the Federal Reserve’s response may well ‘have peaked’.
‘In other words, the policy pursued by the US Federal Reserve should almost have reached its most aggressive level since the start of the current inflationary cycle,’ said Patrick Zweifel, chief economist at Pictet Asset Management.
‘Because price pressures will ease over the next few months, and the recent rise in bond yields shows that, thanks to tough Fed rhetoric, we’ve come a long way already,’ he said. -he.
The intervention of the president of the institution, Jerome Powell, who will be audited Wednesday and Thursday by the American Congress, will be all the more followed.
‘If inflation starts to improve, the significant pressures on bond yields could ease and consequently ease the pressure on equity markets,’ said Mike Gibbs, portfolio manager. shares of Raymond James.
“Once calm returns after the bear market we are currently experiencing, we believe that long-term investors may find risk/reward profiles attractive at current valuation levels,” he continues.
‘And this is a question of the short term, that is to say of the order of a few weeks or months’, concludes the analyst.
With this in mind, the specialist recommends starting to position yourself on quality stocks now.
The trend is also supported by new signs of de-escalation in the interest rate market.
In the United States, the yield of 10-year Treasuries is moving below the 3.24% threshold on Tuesday, well below its multi-year peaks established last week.
That of the German Bund of the same maturity also confirms its relaxation, to 1.74%.
In Asia, the Tokyo Stock Exchange ended up 1.8% on Tuesday after having aligned five out of six down sessions.
With the exception of the latest figures for sales of old homes in the United States, no statistics are on today’s agenda.
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