The Paris Stock Exchange rose by 0.31% on Friday morning

The Paris Stock Exchange rose timidly by 0.31% on Friday, as investors were less anxious about the risk of default by the United States.

The star CAC 40 index advanced 23.26 points to 7,470.15 points around 9:40 a.m. (07:40 GMT), the day after an increase of 0.64% on Thursday.

Over the week, the Parisian rating experienced three sessions of stagnation and currently displays a weekly balance sheet of +0.43%.

“The news about a possible debt ceiling agreement in the United States brings relief,” comments Andreas Lipkow, an independent analyst.

The risk that the United States will find itself in default if no agreement is reached in Congress to raise the country’s debt ceiling has made investors nervous for several weeks.

But the more the negotiations progress, the more everyone seems to think that an agreement will see the light of day sooner or later.

Democratic US President Joe Biden has been briefed on “steady progress” in negotiations, a White House official said on the sidelines of the G7 summit in Japan on Friday.

As for the Republican boss of the House of Representatives Kevin McCarthy, he sees “a breakthrough by which we could reach an agreement”.

On the interest rate and monetary policy side, sovereign bond yields have been on the rise for just over a week as investors adjust their expectations of a possible Federal Reserve rate cut this year.

On Thursday, Fed Dallas Office Chair Lorie Logan said current macroeconomic data did not warrant a pause in the monetary tightening cycle at the Fed’s next meeting in mid-June.

“US growth is more resilient than expected and inflation is quite tenacious, which could push the Fed to resume its rate hike cycle,” warns Stephen Innes, analyst at SPI Asset Management.

Several Fed officials will speak at a monetary policy conference hosted by the US central bank. The President of the European Central Bank (ECB) Christine Lagarde must also speak after the close of European markets.

Traders will also be keeping an eye on the G7, where leaders are meeting in Japan to discuss several topics including sanctions against Russia and safeguards against “economic coercion” from China.

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