Paris stock exchange closes higher ahead of Fed announcement

The Paris Stock Exchange rose 0.75% on Wednesday after a session rich in corporate results and hours before the US Federal Reserve (Fed) announced a key rate hike.

The CAC 40 stellar index gained 46.49 points to end the session at 6,257.94 filled with “fairly encouraging” results driven across the Atlantic by tech giants Alphabet (Google) and Microsoft.

According to Stephan Renow, financial investment expert at Milleis, “the trend of the session is positive, albeit contrasting” from one company to another.

Observing “encouraging results,” Mr. Renow points to “files that have recovered significantly, such as Wordline, Atos, or Elior, which have largely reassured their prospects for future results.”

However, during this period of high inflation and a volatile economic situation in Europe, investors remain “cautious” in anticipation of the Fed’s announcement of an interest rate hike.

A speech by its director, Jerome Powell, who is supposed to guide the markets on the central bank’s future behavior, will be closely scrutinized.

The IMF announced yesterday that it is lowering its forecasts for global growth in 2022. Thus, the eurozone lost 0.2 points, up 2.6%, weighed down by Germany, France and Spain as a result of, among other things, the war in Ukraine.

Gas deliveries from Russia to Germany and other countries of Western Europe dropped significantly on Wednesday and amounted to only 20% of the throughput capacity of the Nord Stream 1 gas pipeline.

The good news, however, is in France: after several quarters of a sharp decline, the number of unemployed fell by 0.8% (excluding Mayotte) in the second quarter to 3.165 million, while the labor market continues to resist economic uncertainty.


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