(News Bulletin 247) – The Parisian index is losing ground at mid-session on Tuesday, while the market is showing a wait-and-see attitude ahead of several economic indicators. The weakness of crude oil leads to a decline in Totalenergies.
The Paris Stock Exchange begins the week without much conviction. The CAC 40 fell 0.17% to 7,333.88 points at mid-session on Monday, while investors showed caution.
Last week the Parisian index gained 0.7% on the market, proving optimistic about the trajectory of inflation, an optimism that the cautious speech of the President of the American Federal Reserve (Fed), Jerome Powell, n It didn’t really hurt on Friday evening.
“The equity markets have very strongly welcomed the slowdown in US economic data in recent weeks, probably considering that this would open discussions on the timetable for the first rate cuts within the Fed… But Jerome Powell absolutely did not agree with this means Friday”, dissects Alexandre Baradez of IG Markets. “Enough to cool down a little the enthusiasm of recent weeks on the markets and lead to some gains?”, he asks.
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Totalenergies declines
The market is awaiting several major meetings this week, notably the monthly report on American employment for November which will be published Friday afternoon. He will also pay attention to the monetary policy decisions of the Bank of Canada and the Royal Bank of Australia.
On the value side, the CAC 40 is weighed down by the 2.3% decline in Totalenergies which is suffering from low oil prices, with Brent below $80. The February contract on North Sea oil lost 1% to $78.02 per barrel while the January contract on WTI listed in New York also lost 1% to $73.26 per barrel.
“The confirmation of OPEC+ production cuts until 2024 has hardly contributed to the rise in oil prices, with markets continuing to doubt compliance with the new ‘voluntary reductions’,” underlines Deutsche Bank.
Some stocks with low valuations stand out. This is the case of Kering which took 2.2% while excluding CAC 40 Maisons du Monde gained 7.2%.
On currencies, the euro lost 0.1% against the dollar to 1.0873 dollars. Gold reached a historic high overnight, above $2,100 per ounce.
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