STOCK EXCHANGE: European stock markets opened slightly lower – the French budget speaks volumes

The stock market in Europe opened at the index level with mostly small price changes. In France, investors are digesting the budget proposal aimed at taming the deficit of the state budget. The CAC-40 index was down 0.5 percent, stronger than the rest of Europe.

The topic of conversation this morning has continued to be China’s recovery, about which more information is expected during the weekend. In addition, the statistics published yesterday afternoon in the United States swayed views on monetary policy. In September, inflation weakened, but more slowly than expected.

“According to the Fed, the last mile to reach the inflation target is tough. That’s how it looks now. However, we still expect the Fed to cut its key rate by 0.25 percentage points in November and likely further in December,” CIBC Private Walthin David Donabedian told Bloomberg.

In Europe, the economic outlook is weaker and investors consider the next interest rate cut at next week’s October meeting practically certain. However, the uncertainties related to the interest rate path in the United States have shaken the markets in Europe as well.

The broad Stoxx 600 was down 0.2 percent after twenty minutes of trading. Out of a total of 20 industry indices, 15 were down. Prices of consumer products and services and consumer goods producers’ stocks fell the most, on average, by more than half a percent. The share prices of real estate investment companies and financial companies were up by 0.1-0.2 percent.

In addition to monetary policy, investors are now preparing for the lively earnings season next week.