The Paris Bourse was careful not to take too many initiatives Wednesday shortly after the opening (+ 0.17%) while awaiting the conclusions of the American central bank expected in the evening.
At 9:25 am (07:25 am GMT), the flagship index of the Parisian market CAC 40 advanced by 8.65 points to 5,076.58 points. The day before, it had ended up slightly (+ 0.35%).
“It is not certain that the event of the day that constitutes the meeting of the American central bank causes a major stir,” writes Christopher Dembik, head of economic research at Saxo Bank.
The Fed’s monetary committee began its discussions on Tuesday morning, and will end them at midday on Wednesday. A press release will be issued in the early evening.
No change in monetary policy is expected by market participants who will focus on the press conference of Fed President Jerome Powell at 6.30 p.m. GMT.
They expect a confirmation of an accommodating monetary policy for a long time and will mainly scrutinize the forecasts for the world’s largest economy until 2023.
“Last meeting before the US presidential elections, the Fed chairman should give a cautious speech on the strength of the recovery, especially given the failure of the vote on the support plan in Congress, but could leave the door open for a policy even more accommodating monetary policy in the coming months, thanks in particular to its new reading of its mandate, ”according to experts at Aurel BGC.
“For many investors, everything has already been said to Jackson Hole, especially concerning inflation. The update of the economic forecasts of the issuing body will however be to watch, in particular the expectations concerning the evolution of the rate unemployment ”, observes Mr. Dembik.
At this annual gathering of central bankers from around the world at the end of August, Fed boss Jerome Powell explained that inflation above the 2% target could be tolerated for a period of time without causing an automatic rate hike. ‘interest.
For a month and a half, negotiations on new financial assistance from the federal government to pull the world’s largest economy out of the crisis have been stalling in Congress.
Casino penalized by a note
At the back of the SBF 120, Casino slipped 4.57% to 21.50 euros after JP Morgan downgraded its recommendation to “neutral” against “outperformance”.
Europcar rose by 0.92% to 0.60 euro. The rating agency S&P Global Ratings has lowered the financial rating of the car rental company which is seeking to restructure its debt by three notches after being very weakened by the Covid-19 pandemic.
GL Events, which suddenly plunged into the red in the first half and which expects a loss of around 50 million euros in a full year, lost 3.38% to 9.72 euros.
Suez crumbled 0.33% to 14.96 euros after entering into negotiations with PreZero, the environmental branch of the Schwarz group, to sell it recycling activities in four European countries for 1.1 billion euros.
pan / vac / spinnaker