The CAC 40 index is set to rebound on Monday morning after experiencing a significant decline last week. Concerns over the political situation in France led to a plunge in the Paris market, with the CAC 40 falling by more than 6% and entering negative territory for the year. However, the 'future' contract on the CAC 40 index for June delivery has recovered, pointing to a rebound at the opening. The recent volatility in the stock market has not been limited to equities, as the euro also experienced a collapse on Friday. Some observers are expressing concern about the ongoing stock market correction and warn that the yield spread on French bonds, the fall in equities, and the potential fall in the euro may persist until July 7. Despite the political upheavals in Europe, the S&P 500 and Nasdaq have continued to set new record highs, supported by better-controlled inflation in the USA and the scenario of a 'soft landing' for the US economy this summer. Economic indicators, particularly those related to inflation, are expected to have a major impact on central banks' monetary policies this week. The Bank of England is set to announce its monetary policy decisions on Thursday, while the Swiss National Bank is expected to refrain from lowering rates until September.
The Paris Bourse is set to rise slightly on Wednesday morning as investors await a new series of indicators to take the pulse of the economy and learn more about the trajectory of the major central banks' monetary policies. After losing up to 1% yesterday, the Paris market managed to limit its losses in the second half of the session, ending the day down by a more limited 0.3%. Investors are counting on the series of economic indicators expected over the next few days to revive the upward momentum that characterized the start of the year. Eurozone producer price figures, due out at 11:00 a.m., will also be closely watched. Wall Street will also be carefully studying the flurry of indicators due to be released today. The New York Stock Exchange ended the day on a new record high on Tuesday evening. The ability of the S&P 500 to continue its record-breaking run will depend on the quality of the economic indicators released over the next few days. On the bond market, the yield on the 10-year Bund continues to trade at around 2.60%, while the French OAT is better oriented at 3.31%. In the energy sector, oil prices remain on an upward trend just a few hours ahead of the release of weekly oil inventories in the United States. [ef410ebc] [efb8538a]