(News Bulletin 247) – The flagship index of the Paris Stock Exchange is moving up sharply in mid-session, the market deciphering the European Commission’s economic forecasts pending the new wave of corporate results.

At the dawn of a new week loaded with corporate results, the CAC 40 is off to a good start. At mid-session, the flagship index of the Paris Stock Exchange, ahead of 0.6% to 7,172.37 points.

The market takes particular note of the new economic forecasts of the European Commission, published on Monday. Brussels is more optimistic for growth, expecting gross domestic product (GDP) growth in the euro zone of 0.9% this year against 0.3% for its previous forecast in November.

In terms of inflation, the Commission anticipates an average rate of 5.6% in October, and 2.5% in 2024, against 6.1% and 2.6% respectively, in November.

Inflation to watch from Tuesday

The big meeting expected by the market, however, remains the publication of US inflation on Tuesday afternoon, a figure fiercely scrutinized by the US Federal Reserve (Fed).

“At first glance, the inflation shock seems to have subsided. This is the opinion of those who expect a rapid bearish pivot in monetary policy. The Fed is more cautious. Disinflation is certainly underway, as Jerome Powell has recognized in his recent speeches, but it is not uniform: very strong for energy, slower for most goods, non-existent for services”, underlines Bruno Cavalier, economist at Oddo BHF.

The week also promises to be rich in business results with the publication this Monday evening of the annual accounts of Michelin, which will be followed by a good number of residents of the CAC 40 (Kering, Hermès, Safran, Airbus, Renault, Carrefour, etc.) later.

The Defense values ​​sought

In the meantime, the trend is green for values ​​on the Paris Stock Exchange. Defense is particularly well oriented, with Dassault Aviation and Thales up around 3% each while diplomatic tensions between China and the United States do not weaken, Beijing having accused Washington of having sent balloons ten times spies on its territory. This a few days after the United States destroyed, at the beginning of the month, a Chinese balloon flying over American territory which, according to the United States, was a spy device.

Orpea still shows volatility worthy of a penny stock, going from an increase of more than 15% at the start of the session to a drop of 14% at mid-session. The group has once again warned that a massive dilution awaits its shareholders, on the occasion of the publication of its activity for the whole of 2022.

The euro is almost stable against the dollar at 1.0679 dollars. Oil contracts are giving way. The April contract on Brent from the North Sea fell 1.25% to 85.31 dollars a barrel while the March contract on WTI listed in New York lost 1.35% to 78.64 dollars a barrel.