The Paris stock exchange opens with fanfare, driven by the fever of gold and copper

On this Whit Monday, the Paris Stock Exchange should open slightly higher, supported by a wave of optimism in Asian markets and expectations of monetary policy easing. Meanwhile, gold and copper are reaching historic levels.

An apparent calm, but movements behind the scenes

Despite the absence of significant statistics on this holiday, the CAC 40 should gain a few points, driven by hopes of interest rate cuts in Europe and the United States.

Asian markets are also moving into positive territory, reassured by China’s measures to address the difficulties of its real estate sector, though their extent still raises questions.

The record reached on Friday by the Dow Jones index, which closed above 40,000 points, is another support factor for the trend. Optimism about the easing of the U.S. Federal Reserve’s (Fed) monetary policy has propelled the price of gold to an unprecedented level this morning.

“We maintain our scenario that the Fed will reduce its key rates by 50 basis points this year, and will proceed with further cuts in 2025 and 2026“, stresses Solita Marcelli, strategist at UBS Global Wealth Management.

Investors will be closely watching the interventions of several Fed officials this week, including the highly anticipated speech by Governor Christopher Waller on Tuesday, which is expected to specifically address U.S. economic prospects and the direction of monetary policy.

Copper soars, sign of booming demand

On the London Metal Exchange, copper futures surged more than 4% at the start of the session, surpassing the $11,000 per ton mark and setting a new record.

This metal, essential for the energy transition, is amplifying a recovery that has lasted for months, fueled by concerns of insufficient supply amid soaring demand, particularly in green industries such as electric vehicles and renewable energy infrastructures.

Investors will also keep an eye on economic indicators from the eurozone, seeking signals that support expectations of a rate cut by the ECB in June. Preliminary PMI survey results for Germany, France, and the eurozone, expected on Thursday, will be particularly monitored.

Although Whit Monday is generally quiet on the statistical front, the Paris Stock Exchange should benefit from the positive momentum in Asian markets and expectations of monetary easing. The surge in gold and copper prices reflects the strong demand and persistent concerns about supply, factors that are likely to continue influencing the trend in the coming sessions.