The CAC 40 index in Paris has seen a slight rise of 0.25%, reaching 7,427.65 points, as investors anticipate major events like the U.S. presidential election and the Federal Reserve’s policy meeting. With votes deeply divided, recent trends favor Kamala Harris. The Fed is expected to announce a 25 basis point cut, while Essilorluxottica’s shares surged 3.7% due to potential investment interest from Meta. The euro strengthened against the dollar, and oil prices increased following OPEC+’s production cut extension.
Paris Index Shows Positive Momentum Ahead of Key Events
The CAC 40 index in Paris is experiencing a modest uptick as the week begins, gaining 0.25% and reaching 7,427.65 points. This positive movement comes as investors brace for significant developments, notably the upcoming American presidential election and the Federal Reserve’s monetary policy meeting later in the week.
Market participants are keenly observing the final hours of the U.S. campaign, with the election set to take place on Tuesday. As noted by Sebastian Paris Horvitz, head of research at LBPAM, the outcome could have far-reaching implications for both the global economy and international relations. “American voters are deeply divided, and this uncertainty is reflected in the fluctuating online betting markets. The odds have recently shifted in favor of Kamala Harris,” he explains.
Upcoming Federal Reserve Meeting and Market Reactions
In addition to the presidential election, Thursday will see the Federal Reserve announce its decision following a two-day monetary policy meeting. Economists from Oddo BHF suggest that the election results shouldn’t significantly impact the Fed’s decision, especially since the outcome may not be immediately clear. A reduction of 25 basis points is anticipated.
On the stock front, Essilorluxottica is providing support to the CAC 40, with shares rising 3.7% following reports that Meta is considering a minority stake in the company. Conversely, Schneider Electric’s shares fell by 1.35% after the announcement of CEO Peter Herweck’s departure due to strategic disagreements. STMicroelectronics also faced a slight decline of 0.18% following a downgrade from Morgan Stanley.
In the currency markets, the euro gained 0.6% against the dollar, now trading at 1.0902 dollars. This increase is attributed to the latest favorable polls for Kamala Harris, which have led to a retreat in the dollar. Meanwhile, oil prices rallied as OPEC+ announced an extension of production cuts, with Brent crude rising 3% to $75.24 per barrel and WTI increasing by the same percentage to $71.66 per barrel.