(News Bulletin 247) – The Paris Stock Exchange is moving forward after a mixed weekend. The CAC 40 is progressing before the publication of inflation figures in the United States on Tuesday.
The Paris Stock Exchange begins this new week on the rise before the publication of key data on inflation in the United States and Europe. The CAC 40 increased by 0.6% to 7,088.15 points on Monday at mid-session.
The Parisian market is therefore trying to remobilize itself after a mixed session on Friday and a dull weekly report (-0.03%).
Thursday evening, Jerome Powell in fact put an end to the procrastination on so-called “terminal” rates, namely whether or not a peak has already been reached on the Fed Funds. The Fed president clarified that his members were not convinced that key rates were high enough to fight inflation.
A “quiet” week
On the agenda this Monday, no major statistics to report. “This week will once again be calm on the statistics front,” recalls Christopher Dembik, investment strategy advisor at Pictet AM, which will however be marked by the publication of data relating to prices on both sides of the Atlantic (Tuesday for the United States and Friday for the euro zone). This data will be closely scrutinized by investors looking for indications on the monetary policy of the world’s major financiers, with the American Federal Reserve and the European Central Bank in the lead.
“As in both cases monetary policy is in pause mode, we doubt that the figures which will be published will have a significant influence on the financial markets. On the other hand, who says slowdown in growth, says expectations of a reduction in key rates” , believes Christopher Dembik.
The specialist further argues that it is “likely that key rates will remain at their current level for longer than expected, in particular because inflation will certainly not return to the 2% target over the next year and because growth, even if it slows, will remain honorable. We estimate that GDP could grow by 1.0% in developed economies and 2.2% globally in 2024.”
Note the highly anticipated meeting between American President Joe Biden and Chinese leader Xi Jinping scheduled for Wednesday in San Francisco. This is the first meeting between the two leaders in a year.
On the values side, the news tends to weaken after an intense earnings season.
Orpea fell by 7.3% this Monday, the operator of retirement homes launched its first capital increase amounting to around 3.9 billion euros.
Solutions 30 grew by 6%. The group is joining forces with the German GlasfaserPlus to deploy fiber in homes in Saarland and Bavaria.
On the foreign exchange market, the euro is stable at 1.0692 dollars. As for oil prices, they are up slightly. A barrel of Brent from the North Sea, for delivery in January, gained 0.15% to $81.56. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, appreciated by 0.2% to $77.33.
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