The Paris Stock Exchange gains 0.5% Monday evening
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(News Bulletin 247) – The Paris Stock Exchange is starting this week in good spirits before a busy agenda on both macroeconomics and business news. The CAC 40 ended up 0.52%, back on 7,000 points on Monday evening.

After a hesitant start to the session, the Paris Stock Exchange finally took the upward path, supported by the opening in the green of the American markets.

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The CAC 40 thus ends this first session of the week up 0.52% to 7,032.02 points, or ten points from its highest of the day (7,044.51 points). This daily increase has enabled the Paris star index to set out again to conquer 7,000 points, lost at the end of the previous week.

Operators are hoping to see the US Federal Reserve ease its interest rates at its next meeting as, according to the wall street journalthe American institution is preparing the ground for an increase of 0.25 point and not 0.5 point in its key rates at the end of its meeting on 1 February.

A decision that would make sense as the signs of a slowdown in the US economy appear over the statistics. The Conference Board’s index of leading indicators, published on Monday, contracted by 1% over one month in December, against a more contained decline of 0.7% expected by the consensus.

Earlier in the day, investors took note of statements by Klaas Knot, Governor of the Bank of the Netherlands and therefore a de facto member of the Governing Council of the ECB. He told the Batavian press on Saturday that we should expect increases of 50 basis points (0.50 percentage point) in the key rates of the central bank of the euro zone at its next two meetings, in February and in March.

Then “expect that we will not be finished by then and that other measures will follow in May and June”, he added according to comments relayed by the Reuters agency.

These declarations propelled the euro against the dollar to its highest since April 2022, before stabilizing around 1.0882 dollars.

A week full of appointments

Investors are otherwise preparing for a fairly busy week on the macroeconomic and corporate front. “First, the economic data that influences their trading decision. Investors have become somewhat wary of the continued weakness in economic data, and it’s clear they no longer treat bad news as good news,” points out Naeem Aslam, an analyst at AvaTrade.

As such, the flash PMI indices for the month of January will be published this week, as well as the PCE index on Friday in the United States, the preferred gauge of the Federal Reserve (Fed) to assess inflation.

Microeconomics aficionados will not be forgotten, however. The results season will gradually increase in intensity. A quarter of S&P 500 companies and no less than 11 companies in the Dow Jones index will report this week. In France, the publication of Alstom will be on Wednesday’s program, before announcements from LVMH and STMicroelectronics on Thursday.

Many Asian places closed

It should also be remembered that many Asian places (mainland China, Singapore, Taiwan, Hong Kong) are closed all this week to celebrate the Lunar New Year placed under the sign of the rabbit.

As for values, Atos ends up 2%, while the engineering company Astek declared to the JDD its interest in the Evidian division which Atos plans to IPO in the second half of 2023.

Rémy Cointreau appreciated by 2.8%, while Citi revised its buy advice on the stock against “neutral” previously. Unibail-Rodamco-Westfield and Icade ended respectively up 4.8% and 3%, supported by Exane BNP Paribas, which moved to “outperformance” against “neutral” on both stocks.

At the bottom of SRD, we note the declines of Boiron (-4.1%), DBV Technologies (-3.3%) and Schlumberger (-3%).

Oil prices remain well oriented. North Sea Brent crude for March delivery rose 1% to $88.50 a barrel, while New York-listed WTI for the same maturity rose 0.65% to $82.17 a barrel.