The French stock market was relatively stable on Tuesday, with traders being cautious as they awaited the publication of U.S. consumer price inflation data. This new data, due later in the day, could provide useful information regarding the trajectory of interest rates.
According to economists, it is expected that consumer prices may have risen by 0.4 percent in February, following a 0.3 percent increase in January. The yearly growth rate of consumer prices is anticipated to remain steady from the previous month at 3.1 percent. However, the annual growth rate of the core consumer price, which disregards food and energy prices, might decrease to 3.7 percent from 3.9 percent.
Given the circumstances, it is predicted that the Federal Reserve will leave rates untouched at its upcoming monetary policy meeting next week. Although, this week's consumer price index report, alongside other scheduled reports on aspects such as producer price inflation, retail sales, industrial production, and consumer sentiment, could influence expectations about when the central bank will ultimately reduce rates.
On another note, the primary CAC 40 index slightly increased to 8,024, after experiencing a minor decrease of 0.1 percent the day before.
