Stock market: The CAC 40 in suspense over the conflicting signals from the FED.

The French stock market, like global stock exchanges, is immersed in uncertainty. Investors are closely watching the conflicting signals sent by the FED regarding its future monetary policy. This has a direct impact on stock prices and the stock market.

The CAC 40 in balance despite stock market fluctuations

Stock markets are currently oscillating between hope and fear regarding the trajectory of FED interest rates.

Some recent economic data in the United States suggested a loosening of the restrictive monetary policy conducted by the central bank. This includes the slowdown in inflation.

Other indicators predict a robust economy. This is the case of the S&P Global composite PMI index, which reached its highest level in 25 months. In this context, the FED might be encouraged to maintain or even strengthen its monetary tightening.

These contradictory data have impacted participation in global stock exchanges in recent weeks. In Paris, the CAC 40 ended last week down 0.89%, but with limited movement of -0.09% on Friday. At the beginning of this week, the CAC 40 is stable. Indeed, investors seem to be adopting a wait-and-see position in response to the muted signals coming from the United States.

The ECB and the European stock market facing interest rates

On the ECB side, analysts expect a cut in key interest rates in June. A decision seen as justified in view of the evolution of inflation in the euro zone. This perspective could support European stock markets in the coming weeks.

However, uncertainty remains regarding the future trajectory of FED rates. A situation that may continue to weigh on global stock markets, including in Europe.

In summary, the CAC 40 is torn between the conflicting signals sent by central banks. The publication of new economic data should provide clarity and guide the trend of stock markets.