(News Bulletin 247) – The Paris Stock Exchange should open lower on Monday morning after its gains last week, the absence of a major indicator and Wall Street, closed for ‘Juneteenth’, prompting investors to take a break.

Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – which has now switched to the July deadline – fell 29 points to 7369 points, announcing a start to the session in the red.

The Parisian market had managed to recover 2.3% last week and to return not far from the threshold of 7400 points, visibly indifferent to the prospect of “higher, for longer” rates on the side of the ECB and the Fed.

Since the beginning of the year, the rise in the CAC has reached almost 14%.

After experiencing a bout of weakness in early spring, global stock markets seem to have regained a more favorable momentum in recent weeks, helped by the good performance of Japanese equities and the strength of the technology compartment thanks to AI.

In New York, the S&P 500 – the benchmark index for American managers – has just posted a fifth consecutive week of growth, its longest bullish series since November 2021.

The session of the day promises to be relatively calm, however, due to the closure of the American equity markets, for the day of reflection and commemoration of the end of slavery in the United States (‘Juneteenth’).

On the Tokyo Stock Exchange, the Nikkei suffered some profit taking on Monday (-1.3%) following the spectacular gains recorded since the start of the year (+29%), which for the moment make it the best-performing index for this first part of the year.

In China, the CSI 300 large cap index fell 0.8% at the end of the session, while the Hong Kong Stock Exchange lost 1.3%.

In the economic chapter, the publication – on Friday – of the PMI indices in Europe and the United States will be the big event expected on the world markets this week.

These indicators should confirm the very wide disparity that currently exists between the dynamism of the service sector and the weakness of the manufacturing industry.

In terms of bonds, the yield on the 10-year German Bund continues to tighten, at 2.54%, in view of the next rate hikes from the ECB.

On the foreign exchange market, the greenback continues to decline, with the euro rising modestly to 1.0935 dollars, traders now seem to be betting on an economic slowdown across the Atlantic.

Oil prices remain trending lower towards 1-year lows as market participants believe demand is unlikely to pick up in the near term.

American light crude thus fell 1.1% to drop below 71 dollars, and Brent from the North Sea dropped 1.1% to less than 75.8 dollars.

Copyright (c) 2023 News Bulletin 247. All rights reserved.