The Paris Bourse is set to open with small gaps on Thursday morning, as profit-taking takes hold at the start of the New Year, breaking with the momentum that had recently enabled it to set absolute highs.

At around 8:15 a.m., the future contract on the CAC 40 index - January delivery - was up 13.5 points at 7,438 points, suggesting a modest rebound early in the session.

Buoyed by the prospect of forthcoming rate cuts in the United States and Europe, the Paris market has enjoyed particularly favorable momentum since the end of October.

The CAC 40 index has gained almost 12% in less than two months, setting new all-time highs above 7,600 points.

But the speed and scale of this upward movement have prompted investors to take profits at the start of the year, a trend reversal accentuated by heightened volatility due to low trading volumes, with many players still on vacation.

The stock market decline should not be exaggerated," moderates Christopher Dembik, Investment Strategy Consultant at Pictet AM. It mainly reflects profit-taking after an excellent end to 2023", the analyst points out.

The trend on the stock markets should depend on the day's economic indicators, as market players will be taking note of numerous indicators that will enable them to assess the central banks' plans.

We'll certainly have to wait for the US Federal Reserve's meeting at the end of the month for the market to regain a clearer direction", adds Christopher Dembik.

"It sorely needs visibility regarding the trajectory of monetary policy", continues the professional.

Rate futures now incorporate a 66% probability of a rate cut in March, according to the CME's FedWatch barometer, compared with 87% on Tuesday and 96% on Monday.

In Europe, the morning will see the publication of PMI activity indices in the services sector, followed by the first German inflation figures for December.

In the United States, the ADP survey on private employment and unemployment benefit registrations are expected, which will reveal whether the US labor market is continuing to slow.

The yield on 10-year US Treasury bonds eases to 3.90% pending the day's US indicators, after having risen above the 4% threshold the previous day.

On the European bond market, it's also time to relax, as the German 10-year yield returns to 2.02%, not far from the important 2% mark.

Still hesitant, the euro resumes its upward trend against the dollar, at 1.0930.

The oil market confirms its favorable trend after surging the previous day in the run-up to the release of US crude inventories, and in the face of disruptions to maritime trade at the Panama Canal and in the Red Sea.

Brent crude recovers 0.6% to $78.7 a barrel, while US light crude (West Texas Intermediate, WTI) gains 0.8% to $73.3.

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