The Paris Bourse is expected to trade flat to slightly lower on Tuesday morning, in a market still dominated by caution on the eve of US inflation figures and two days ahead of announcements by the European Central Bank (ECB).

At around 8:15 a.m., the future contract on the CAC 40 index - expiring in September - was trading at 7424 points, down 12 points, suggesting a cautious start to the session.

After falling by almost 4% last week, the Paris market had recovered yesterday, posting a 1% rise to 7425 points on the back of some cheap buy-backs in a nonetheless wait-and-see climate.

The differences were no more spectacular on Wall Street, where the Dow Jones rebounded by 1.2% and the Nasdaq by more than 1.1% after suffering its worst weekly decline in a year last week.

Some strategists point out that there are currently many reasons to stay away from the market, citing the slowdown in US growth, concerns about the Chinese economy and the prospect of the US presidential election in November.

Another reason for caution is the first televised debate between Kamala Harris and Donald Trump in the run-up to the presidential election, to be held this evening on ABC.

Investors should therefore be wary of committing themselves too much while awaiting tomorrow's release of US consumer prices (CPI), which could shed light on the Fed's intentions.

Mixed figures could complicate the task of the US central bank, which intends to start cutting interest rates from next week onwards.

Economic statistics have been rather mixed of late, depriving the markets of sufficiently convincing elements to start rising again in a favorable context of monetary easing.

The imminence of a first interest-rate cut in the United States, after a cycle of over two years of increases, was not the catalyst we had hoped for", notes Michel Douin, Portfolio Manager at Cholet Dupont Oudart.

He points out that investors believe, rightly or wrongly, that the Fed has taken too long to act, given the deterioration in a number of economic indicators.

The probability of a 50 basis point rate cut on Wednesday September 18 is estimated at 29%, while it rises to 71% for a 25 basis point cut, according to CME Group's FedWatch barometer.

Tomorrow's figures are all the more eagerly awaited, which should lead many traders to keep their ammunition warm.

Traders should therefore favor a 'wait and see' approach, which heralds a consolidation session with perhaps a few precautionary sales while awaiting tomorrow's figures.

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