Tuesday, May 28, 2024
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The French stock market, like the rest of the world, is mired in uncertainty as investors monitor the conflicting signals coming from the Fed regarding future monetary policy, which has a direct impact on stock prices and the stock market.
Despite stock market volatility, CAC 40 remains balanced
The stock market is currently oscillating between hope and fear. FED Rate Trajectory.
Recent economic data in the United States has suggested that the central bank may be easing its tight monetary policy, including slowing inflation.
Other indicators are predicting the economy is on a strong footing — the S&P Global Composite PMI index hit a 25-month high — and that could force the Fed to hold or even tighten interest rates. Monetary tightening.
These conflicting data have affected participation in global stock markets in recent weeks. In Paris, the CAC 40 closed down 0.89% last week, but made limited moves at -0.09% on Friday. The CAC 40 has been stable since the start of the week. In fact, investors Wait-and-see attitude In response to modest signals from the United States.
ECB and European stock markets face interest rates
On the ECB side, analysts Key interest rates cut in JuneThe decision appears justified given the direction of inflation in the euro zone, a prospect that could support European stock markets in the coming weeks.
However, uncertainty remains about the future trajectory of Fed interest rates, which may continue to weigh on global stock markets, including those in Europe.
In summary, the CAC 40 is torn between conflicting signals coming from central banks. New economic data releases should provide clarity and direction for stock market movements.
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I am 31 years old with Ariella as my wife. I have been playing in the web editing domain for over 7 years. I don’t know about trading and cryptocurrencies for years. No, it’s a world that I am very interested in. The topics that are dealt with on the platform always offer the benefit of learning. After a few hours of singing life, I have a great passion for music and lectures (and animals!).
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
