Overview

• Paris edged higher Wednesday morning, with the CAC 40 up 0.19% to 7,833 after a 1.0% decline Tuesday as a stronger euro pressured shares.
• Investors widely price a 25 basis-point reduction from the current 4.25%–4.50% range, with Jerome Powell’s remarks and projections seen as key to the path of further cuts.
• The meeting unfolds under unusual governance strain as newly confirmed Stephen Miran joins the Board and Lisa Cook remains in place pending litigation, with President Trump pressing publicly for lower rates.
• The euro’s rise to a multi-year high is stoking competitiveness concerns for European exporters and weighing on banks, while luxury names such as Kering outperformed on Gucci leadership reports.
• Fitch’s downgrade of France to A+ has had limited immediate bond impact, with the 10-year yield near 3.5% and the spread to Germany around 0.80 point, as sector moves drive equities more than sovereign headlines.