The Paris Stock Exchange returned in the very last minutes of the session in the green to close up 0.13%, shortly before the conclusions of a meeting of the American Central Bank whose economic forecasts are expected to be firm.
The Paris index advanced 6.49 points to 5,074.42 points after moving in the red throughout the second part of the session, and Wall Street progressed at mid-session.
“It’s been a very poor session,” said Michael Hewson, chief market analyst for CMC Markets UK.
From the Fed meeting, nothing is expected on the level of interest rates, which move in a range of 0 to 0.25% after being lowered urgently to deal with the Covid-19 crisis.
It is especially the economic forecasts, which the monetary institution gives four times a year, which will be scrutinized very closely. The Fed will deliver its expectations until 2023.
Philippe Cohen, manager at Kiplink, expressed his “astonishment” at the stock market’s lack of enthusiasm before the Fed’s conclusions, the latter having already announced “a lot” to reassure investors in recent months.
In addition to interest rates at a historic low, and massive purchases of financial securities in the markets, the organization led by Jerome Powell recently overturned its historical philosophy by indicating that it would tolerate inflation above 2% for a time. without leading to an automatic rate hike.
Philippe Cohen noted, however, that the rise of the stock market at the end of the session showed that investors were showing “reason”.
One way to explain the ambient caution could be the fear that economic expectations are less good than expected, underlined several observers.
In reverse of this fear, the OECD announced Wednesday in its economic outlook forecasts of a less pronounced global recession than expected in 2020. The United States should experience a recession of 3.8% this year and a rebound of 4% next year.
Before the summer, the Fed was forecasting a 6.5% decline in US GDP in 2020, before a 5% rebound in 2021 and a 3.5% increase in 2022.
Among the values of the day in Paris, the French railway manufacturer Alstom (+ 0.77% to 45.70 euros) announced the signing of the contract to acquire Canadian Bombardier Transport for a price revised downwards, “expected until to 5.3 billion euros “.
Bank stocks were heckled by the small decline in sovereign yields: Societe Generale fell 0.20% to 12.97 euros, BNP Paribas 0.35% to 35.71 euros and Crédit Agricole 1.05% to 8.45 euros.