(CercleFinance.com) – The Paris Stock Exchange should rise again on Wednesday at the start of the session in the wake of Wall Street the day before, the remarks made by the President of the Fed Jerome Powell having confirmed investors in their expectations.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – delivery at the end of February – advanced 44 points to 7182 points, announcing the start of the session in positive territory.
At a conference held yesterday in Washington, Jerome Powell assured that he did not rule out accelerating the pace of rate hikes by the Federal Reserve if strong economic indicators warranted it.
His remarks reinforced the general sentiment given by the latest jobs report, which showed that the labor market remained under pressure, as did wages and inflation.
‘His speech did not bring many new elements’, analysts at Danske Bank said this morning.
“The markets expected a clearly restrictive turn after the employment figures far exceeded expectations, but these concerns did not materialize”, underlines the teams of the Danish bank.
‘That said, Powell was far from accommodating and insisted that the Fed should do more if employment and inflation remained so strong,’ the economists continued.
Following these comments, the Dow Jones ended up 0.8% and the Nasdaq a Composite climbed 1.9%.
As the Fed’s statements on the evolution of its monetary tightening cycle are still closely followed by the markets, investors will be watching today the interventions of Michael Barr, the vice-president of the Fed in charge of banking supervision, then by Christopher Waller, one of the governors of the Federal Reserve
On the results side, the market awaits the continuation of the quarterly publications, with the accounts of CVS Health, Equinor, Uber and Under Armor expected today.
On the other hand, the agenda promises to be lightened from a macroeconomic point of view, since only the stocks of wholesalers and oil stocks will come to animate the session this afternoon in the United States.
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