Stock market buzzes with CAC 40 fervor, anticipation high for the Federal Reserve's speech potential impact!
On this Wednesday, May 7th, the Paris Stock Exchange is shuffling slightly as investors keep their eyes on the Federal Reserve's decision, anticipated later in the day. By mid-morning, the CAC 40 index had dipped 0.50%, losing 38.35 points to stand at 7,658.57 points.
The Paris Stock Exchange is riding the waves of anticipation for the US Fed's decision while holding its breath for potential progress in trade negotiations between China and the US. Around 10:00 AM Paris time, the CAC 40 index, the market's leading indicator, was feeling the heat with a 0.50% drop.
The Fed is expected to keep interest rates steady on Wednesday, waiting to see how the global economy fares under Donald Trump's protectionist policies. Kathleen Brooks, XTB's research director, comments that while no change is expected, Jerome Powell's post-decision press conference will carry significant weight. Ipek Ozkardeskaya, an analyst at Swissquote, agrees, stating that Powell's careful rhetoric will reassure investors about the Fed's commitment to fighting inflation, regardless of pressure for rate cuts.
Orange, one of the CAC 40's big players, is seeing keen investor interest. Currently trading between €12.38 to €12.65, Orange stock has enjoyed a recent daily growth of around 0.357%, to €12.65 from €12.60.The stock has been on a steady rise over the past 10 days and is expected to continue its upward trajectory in the near term. The attractive dividend yield of 6.24% for 2025 makes it an appealing choice for income-focused investors.
Legrand, a French electrical equipment specialist, is accelerating in data centers, a key component of its growth strategy. The group reported a 12.3% increase in its first-quarter sales and affirmed its annual objectives despite the global economic uncertainties around tariffs. Legrand's stock price rose 2.20% to €100.30 as a result.
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Sources:[1] Bloomberg[2] Reuters[3] Financial Times[4] Reuters Pricing dataset[5] TradingView
Some investors are considering financing their investments in stocks, such as Orange, via rented funds, given the attractive dividend yield of 6.24% for 2025. Meanwhile, the decision made by the Federal Reserve on interest rates could affect investing strategies in the stock-market, as its post-decision press conference is expected to be influential.
