CAC 40: a favorable bias despite oil and interest rates – archyde

(CercleFinance.com) – The Paris Bourse should manage to open slightly higher on Tuesday morning, despite the negative factors of soaring energy prices and rising bond rates.

Around 8:15 am, the future contract on the CAC 40 index – delivery October – advanced 18 points to 6661 points, announcing a continuation of the recent upward movement.

After rising 1% last week, the Paris market started the week on a cautious note yesterday, posting a residual gain of 0.2% to 6651 points.

The financial centers are trying to escape the pressure of long rates, with a 10-year T-Bond yield which now exceeds the psychological bar of 1.5%.

This degradation of the bond compartment is to be compared to the surge in oil, beyond 80 dollars on Brent in London and 76 dollars for WTI in New York, a brutal phenomenon which reinforces inflationary expectations.

Faced with these price pressures, investors say more cautious signals could soon emanate from central banks.

Jerome Powell – the chairman of the Federal Reserve – is due to speak today at a virtual Fed conference devoted to post-pandemic recovery.

Christine Lagarde, the President of the ECB, is also due to speak during the day during a forum organized by the European Central Bank on the theme of the future of economic policy after the epidemic.

In Washington, Janet Yellen, the US Secretary of the Treasury, will appear before the Senate Banking Committee as the question of the fiscal wall once again haunts the minds of investors.

Democrats and Republicans have until Thursday evening to agree on ways to reduce the fiscal deficit.