2023-12-12 13:01:15
By Danièle Guinot
Published 53 minutes ago, Updated 11 minutes ago
The previous record dates back to April 21 (7577 points). Miha Creative – stock.adobe.com
The flagship index of the Paris Stock Exchange crossed 7,580 points for the first time on Tuesday morning.
Christmas came early at the Paris Stock Exchange. This Tuesday, in the morning, the CAC 40 index reached a new historic high at 7580.56 points, before falling again. The previous record dates back to April 21 (7577 points). Since its low point on October 23, the CAC 40 is up 11.5%. And it has appreciated by 16.90% since January 1st. Euphoria has spread to all the major world markets and the Dax, the flagship index of the Frankfurt Stock Exchange, is also trading at its highest.
Since the end of October, investors have been betting on a stabilization or even a fall in interest rates next year, first in the United States, then in Europe. This Tuesday, the United States will publish inflation figures for November. Previous data showed inflation slowing to 3.2% across the Atlantic in October, and core inflation, which excludes volatile food and energy prices, was at 4%, at lowest in more than two years. Which, in the eyes of the markets, should encourage the American Central Bank (Fed) to maintain its key rate in the same range for the third time in a row at the end of its meeting on Wednesday. And this, after having raised it eleven times since March 2022, bringing its interest rates to their highest level in 22 years, in a range of 5.25 to 5.50%.
“Overall, the Fed Chairman (Jerome Powell, Editor’s note) should take a balanced stance aimed at reducing expectations of early interest rate cuts in 2024. However, it may prove difficult to convince stakeholders of the market given the rapid decline in inflation”comments François Rimeu, strategist at La Française AM.
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