CAC 40: a wait-and-see climate before the ECB – archyworldys

(CercleFinance.com) – The Paris Bourse should open without much change Thursday morning, in a climate of wait-and-see attitude before new results and important indicators, and a meeting of the ECB.

Around 8:15 am, the ‘future’ contract on the CAC 40 index – delivery November – grabs 4.5 points to 6753 points, announcing a start of the session around the equilibrium.

The European Central Bank (ECB) will hold its Governing Council in the morning, which will result in the publication of a press release at 1.45 p.m. followed by a press conference which will begin at 2.30 p.m.

According to analysts, the central authority should maintain an accommodating tone to preserve favorable financial conditions and thus delay expectations of the first rate hike.

‘Overall, this ECB meeting should be a non-event,’ said François Rimeu, strategist at La Française AM.

‘For the December council, on the other hand, we should have an update of its macroeconomic projections (with the first estimates for 2024),’ he said.

In any case, the manager warns that accommodating communication on the future direction of rates could push short-term interest rates down.

Another highlight of the day, investors will read the first estimate of US growth for the third quarter at 2:30 p.m.

Stakeholders will also have to monitor a new slew of quarterly results, including those of ABInbev, Caterpillar, Merck, Nokia or Shell.

While Wall Street showed promising mid-session arrangements, the second half of the session turned out to be very disappointing and the morning’s gains evaporated over the past two hours despite dramatic easing in rates.

The Dow Jones index ultimately fell more than 0.7%, the S&P 500 dropped 0.5% and the Nasdaq Composite ended unchanged thanks to the progress of Microsoft and Alphabet.