Paris Stock Market Rebounds on Hopes of Fed Policy Shift
The week starts on a positive note for the Paris stock market. After a plunge of nearly 3% on Friday, the CAC 40 indeed shows a rebound of 0.76% at the opening. According to analysts, this would be driven by a renewed optimism about the Fed’s policy. A turnaround that raises questions: could the American slowdown ultimately benefit financial markets? Analysis.

In Brief
- The Paris stock market rebounds thanks to expectations of a Fed rate cut.
- Despite declining profits, investors remain confident in light of favorable monetary signals.
The Paris stock market boosted by hopes of rate cuts
Investors now see in the U.S. unemployment report a catalyst for hope. With an increase in the unemployment rate in the United States in July, markets indeed anticipate a possible turning point in the Fed’s monetary policy.
Result: the probability of an interest rate cut in September rose from 38% to over 80% .
For operators, this expected easing is a windfall. Indeed, a rate cut makes stocks more attractive in a context where market volatility has recently strengthened risk aversion.
Disappointing results, but renewed confidence in the stock market
Despite a global economy still under pressure, the results of listed companies are not as bleak as expected. Of the 39 CAC 40 companies, quarterly results show a net profit totaling 51.8 billion euros. This represents a decline of 28%. As for yield, it remains under pressure due to the strong euro and tensions related to U.S. tariffs.
Yet, the stock market already anticipates a lull. Even the French 10-year borrowing rate remains stable at 3.35%. This signals a reassured market. In this context, eyes are now focused on the next Fed meeting in mid-September.
In any case, the stock market could start a bullish cycle if optimism lasts (despite uncertainties over public debt or geopolitics). August therefore promises to be decisive.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Gov Receives $332K ETH Linked to Uranium Hack
US wallet gets $332K in ETH from Coinbase, tied to 2021 Uranium Finance hack. Part of $31M seized in 2025 DeFi crackdown.Ethereum Transfer Linked to 2021 ExploitPart of a Larger $31M Seizure Effort

Trader Loses $710K, Recovers with Kanye West YZY Token
A trader lost $710K buying the wrong YZY token but recovered with Kanye West’s real YZY, now sitting on big profits.A Costly Mistake with the Wrong YZY TokenKanye West YZY Token Brings RedemptionLessons for Crypto Investors

Ethereum Support Breaks Again, Then Bounces Back
Ethereum breaks key support for the third time, triggers panic, then bounces back stronger. Here's what's driving the slingshot moves.The Pattern Behind the PanicIs This Bullish or a Warning Sign?

BTC Holds Strong at Supertrend Support Level
Bitcoin bounces within expected range as Supertrend support holds firm, signaling bullish strength.Bitcoin Respects the Supertrend SupportPrice Action Aligns with Market ExpectationsWhat’s Next for Bitcoin?

Trending news
MoreCrypto prices
More








