CAC Index Weakened
CAC has broadly declined 0.93%. At this point, it’s trading at 5132.50. French 10-year bond yield grew to 0.82%. Eurozone Retail PMI rose from 53.0 to 53.2. Tomorrow, the United States will announce Nonfarm Payrolls. European Central Bank published the protocol of its June meeting. Members discussed the opportunity of a policy tightening, but ultimately stood pat. Peter Praet (ECB chief economist) stated that the economic growth is improving, but low inflation interferes with the recovery. Members affirmed that there will be no more rate reductions. Next meeting will take place July 20. ECB isn’t likely to resort to some drastic moves, particularly the asset purchase program won’t be removed until the inflation hits the 2% objective. The majority speculates about the timeline for the Fed balance sheet tapering. But, members haven’t thought it through yet. Currently, fed fund futures are pricing in 50% odds for December rate hike.