PARIS (Reuters) – The main European stock markets are trading slightly on Monday morning in a context of risk aversion linked to the fear of an escalation of the conflict between Palestinian Hamas and Israel, which takes precedence over the results of Business and economic data expected this week.

In Paris, the CAC 40 rose 0.01% to 7,002.90 points around 07:40 GMT. In London, the FTSE 100 rose 0.22%, thanks to oil stocks. In Frankfurt, the Dax gained 0.09%.

The EuroStoxx 50 index gained 0.03%, the FTSEurofirst 300 by 0.22% and the Stoxx 600 0.07%.

Futures contracts on Wall Street predict an increase of 0.24% for the Dow Jones, 0.18% for the Standard & Poor’s 500 and 0.14% for the Nasdaq while Friday’s session was marked by a decline in these last two indices despite the positive results of large American banks.

Financial markets are scrutinizing the fallout from tensions in the Middle East as Israeli Prime Minister Benjamin Netanyahu promised on Sunday to “dismantle” Hamas and hundreds of thousands of Palestinian civilians fled the northern Gaza Strip. Emmanuel Macron, for his part, warned Iranian President Ebrahim Raïssi, Tehran supporting Hamas, against any extension of the conflict.

“It appears that we are heading towards a massive ground invasion of Gaza and a large-scale loss of human life,” fears Ben Cahill, researcher at the Center for Strategic and International Studies (CSIS). “Every time there is a conflict of this magnitude, there is a market reaction,” he stressed.

According to sources, the United States, Israel and Egypt have, however, agreed on a ceasefire in southern Gaza. Which Israel subsequently seemed to deny.

On the stock market, the energy sector (+0.83%) is still sought after while the barrel of Brent gained 7.5% over the past week, including 6% on Friday’s session alone, its strongest increase. daily since April, in a context of concern over supplies in the event of an escalation of the conflict in the Middle East.

Defense stocks like Saab, Leonardo and Rheinmetall advance by 0.37% to 0.76%.

In corporate news, Atos jumped 7.62% after the announcement of the departure of the chairman of its board of directors, Bertrand Meunier, target of criticism from minority shareholders concerning the proposed sale of the subsidiary Tech Foundations to Daniel Kretinsky.

The manufacturer of artificial hearts Carmat climbs 11.11% thanks to a capital increase of seven million euros, while Lagardère SA advances 1.06% after publishing on Friday a turnover increase of 15.3% over the first nine months of the year.

BioNtech falls 6.67% in the wake of Pfizer, which on Friday lowered its full-year revenue forecast by 13% due to weaker than expected sales of its COVID-19 vaccines and treatments. 19.

(Writing by Claude Chendjou, edited by Kate Entringer)

Copyright © 2023 Thomson Reuters