Global stock markets regained some confidence on Monday, at the start of a week marked by various releases on the American economy. The Paris stock exchange rose slightly by 0.24% on Monday morning, starting the week cautiously awaiting the publication of key indicators on the state of the US economy and insights into American and Chinese consumer spending.
The CAC 40 climbed 17.44 points to 7,286.90 points. On Friday, it had edged up 0.25% after a volatile week and a “Black Monday” triggered by recession fears in the US and the liquidation of speculative operations on the yen.
Following a series of somewhat contradictory indicators on US economic dynamics, investors are now awaiting producer price index (PPI) data on Tuesday and inflation index figures to be released on Wednesday. Another key indicator, July retail sales in the US, will be unveiled on Thursday, providing insight into the health of the American consumer. A very low figure could plunge markets back into recessionary fears.
Investors worry that the US central bank’s measures to curb inflation may have pushed the economy into recession, and they now anticipate three rate cuts by the end of the year, including an initial decline as soon as September.
However, analysts expect investors to remain cautious this week, as new phases of instability and volatility cannot be ruled out.
With AFP
