The rebound should continue this Thursday, July 7 after touching its lowest levels since March 2021 on Tuesday. The futures contract for the star CAC 40 index gained 1.10% around forty minutes before the opening of the session. The day before, it had increased by 2.03% to finish at 5,912.38 points. In the United States, Wall Street ended up slightly after hovering around equilibrium before the release of the minutes of the last meeting of the Fed’s monetary policy committee, which took place in mid-June. The officials of the institution had then noted “that inflationary pressures (had) not yet shown signs of slowing down”.
In other words, the rise in prices could be “more persistent than they previously anticipated,” according to the document. After raising interest rates by 0.75 percentage points, the most aggressive in almost 30 years, they did not rule out a similar hike at their next meeting on 26 and July 27. If the rise in interest rates is generally unfavorable to equities, investors fear even more inflation and the difficulties for consumption and corporate margins that it generates.
“The French economy is bloodless, weak and disoriented”, how to bounce back?
“The good news is that equities have risen because the boom in commodity and oil prices is easing” over the past few sessions, allowing some pressure to ease on this important component. inflation, says Stephen Innes, fund manager at Spi AM. On Wednesday, the price of a barrel of Brent fell a few hours below $100 for the first time since April, while it was still above $110 on Tuesday, illustrating fears of an economic slowdown and its consequences on oil demand. Thursday around 8:15 a.m., it was stable at $100.77.
EDF in the values to follow this Thursday
EDF: the electrician jumped more than 14% on Wednesday after the announcement of the government’s desire to renationalise the group, of which it already owns around 84%. But Prime Minister Elisabeth Borne did not specify in her general policy statement before the National Assembly the purchase price envisaged for the takeover bid. In addition, the next CEO will be appointed early, Bercy said on Thursday.
EDF: why the State wants to renationalise 100%