Cac 40 integrated, Fed monetary policy questions, market news

The Paris Stock Exchange was merged after seven growths in 10 days. Markets are trying to assess the consequences of the tone changes adopted by the Federal Reserve to curb inflation and their impact on bond markets. The Cac 40, which has wiped out most of its losses since the beginning of the war in Ukraine, nevertheless continues to be exposed to the increase in raw materials, which is the main result of the conflict, which could continue.

After 11:00 am, Bedroom 40 With a trading volume of 650 million euros, it decreased by 0.25% to 6,642.97 points.

Jerome Powell favors accelerating the normalization of U.S. monetary policy, raising interest rates by 50 basis points in May as U.S. inflation reaches a record high of 7.9% in a year. Did not deny the outlook. This decision seems to reassure investors while pushing bond yields to levels not seen for at least three years, but yield differences between long-term and short-term interest rates are generally a precursor to a recession. We are heading for a reversal. Yields on US Treasuries fell nearly 3 basis points to 2.3572%, while German American Bund yields with the same maturity fell by the same amount to 0.4670%.

The market welcomes the Fed’s determination

The market welcomes the Federal Reserve’s determination to fight inflation, but the central bank of the United States simply says ” Determining the worst policy to correct the terrible mistakes it made by making inflation worse. Ipek Ozkardeskaya, an analyst at Swiss Quart, said. But she adds that the good news is that Jerome Powell has so far gained market support.But this support If economic indicators begin to decline and corporate profits slow down, they can decline rapidly. “.

On the geopolitical side, Joe Biden will begin his trip to Europe this Wednesday in an attempt to convince his partner to adopt new sanctions against Russia. The President of the United States will attend the NATO Summit, the European Council and the G7 Summit in Brussels on Thursday.

Air Liquide at the top of Cac 40

On the oil side, Brent barrels from the North Sea rose 2% to $ 117.78, due to fears of stricter sanctions on Russia and a reduction in U.S. weekly inventory of 4.3 million barrels. .. From the American Petroleum Institute (API).

TotalEnergies It takes 0.5%.The group says it has been decided One-sidedly “Do not enter into or renew contracts for the purchase of Russian oil and petroleum products in order to suspend these purchases.” As soon as possible, at the latest by the end of 2022 “.

L’Oreal Yield of 0.4%. Cosmetics giants have announced that they have raised € 3 billion at the end of bond issuance in the three tranches that generated demand. Exceptional From investors.

Liquid air It increased by 1.7%. The group has signed a purchase agreement for 1.2 million shares, or 0.25% of the capital, with a maximum unit price of € 200. In addition, Goldman Sachs has added the stock to its list of preferred stocks.

Cebu Increase by 1.1%. Bpifrance, a public investment bank, has announced that its Lac1 fund has invested in the capital of a specialist in small household appliances. Bpifrance does not elaborate on this investment or the percentage of Seb’s capital held by Lac1.