Monday, May 27, 2024 ▪
3
min reading ▪ acc
The French stock market, like global stock markets, was plunged into uncertainty. Investors are scrutinizing the mixed signals the Fed is sending about its future monetary policy. Which has a direct impact on share prices and the stock market.
CAC 40 in balance despite stock market swings
Stock markets are currently oscillating between hope and fear the trajectory of key FED rates.
Some recent economic data in the United States suggested an easing of the central bank’s restrictive monetary policy. The slowdown in inflation is mentioned in particular.
Other indicators predict a strong economy. That’s the case with the S&P Global composite PMI, which hit a 25-month high. In this context, the FED could be encouraged to maintain or even strengthen it monetary tightening.
This conflicting data has affected participation in global stock markets in recent weeks. In Paris, the CAC 40 ended last week with a loss of 0.89%, but on Friday it was a limited change of -0.09%. At the start of the week, the CAC 40 is flat. Investors seem to be really accepting waiting position in the face of weakened signals emanating from the United States.
ECB and European stock market face interest rates
On the ECB’s side, analysts expect cut in base rates in June. A decision considered justified with regard to the development of inflation in the Eurozone. This prospect could support European equity markets in the coming weeks.
However, uncertainty remains regarding the future development of Fed rates. A situation that could continue to weigh on global stock markets, including European ones.
In short, the CAC 40 is torn between conflicting signals sent by central banks. The release of new economic data should provide clarity and direct the trend in equity markets.
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My name is Ariela and I am 31 years old. I have been working in the field of web development for 7 years. I only discovered trading and cryptocurrencies a few years ago. But it’s the universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
