(News Bulletin 247) – Strongly shaken in recent weeks, the Paris Stock Exchange hopes to regain its senses on Monday at the start of a week that will be dominated by the publication of new data on inflation.

Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – April delivery – advanced 58.5 points to 7087.5 points, suggesting one after the new bout of weakness experienced on Friday.

The Parisian market had ended Friday’s session with a decline of 1.7%, penalized by the heavy decline of Deutsche Bank (-8.5%) in Frankfurt, victim of the crisis of confidence which still surrounds the European banking sector.

Although the CAC may have regained some ground last week (+1.3%), it seems unlikely that the equity markets will regain the serenity that had enabled them to progress strongly since the start of the year.

After the sudden outbreak of fever and the return of volatility at the beginning of March, the fear subsided but the markets have still not returned to the state of mind observed before the correction in banking stocks.

The index measuring the volatility of the Euro STOXX 50, whose sudden surge had taken many investors by surprise, again lurched by more than 15% on Friday.

Analysts therefore remain cautious about the prospect of a lasting recovery, instead expecting a path strewn with pitfalls given the uncertainties surrounding the health of the economy and the evolution of monetary policies.

Monday’s session should remain calm thanks to an empty agenda of any economic indicator, but the coming week could bring some clarity on many subjects.

One of the elements to watch over the next few days will once again be the evolution of inflation, which remains one of the main concerns of the markets.

Investors will be on the lookout for further signs of price pressures with the release of the latest euro zone inflation figures on Thursday, which will be followed on Friday by those for consumer prices as measured by the price index. personal consumption expenditure (PCE) in the United States.

Overall, market participants believe that the recent tensions in the banking sector will help to tighten financial conditions, so that less action will be needed from central banks.

But the severe turbulence experienced by the banking sector could also significantly increase the risks of recession.

In this context, investors know that the timing and speed of any rate cuts will depend on the extent of the economic slowdown, but above all on the evolution of inflationary risks.

In the immediate future, the rebound in European stock markets should follow in the wake of the upward movement initiated by Wall Street on Friday, and which partly spread to Asia on Monday.

On the Tokyo Stock Exchange, the Nikkei index posted a gain of almost 0.5% at the end of the session, but the trend was quite different in Shanghai, where the CSI lost 0.4%.

On the bond market, the yield on 10-year US government bonds, still closely followed by investors, rose to around 3.38% after falling below the 3.30% threshold on Friday.

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