(News Bulletin 247) – The Parisian index fell by 0.12% this Monday at the start of a week which will be marked by the publication of inflation figures in the United States.

A relatively calm session for the Paris Stock Exchange this Monday. The CAC 40 fell 0.12% to 8,209.28 points, thus taking a slight breath after pushing back its records on Friday both during the session and at the close on Friday.

A little wait-and-see attitude was observed this Monday, while the major meetings will take place later in the week.

This will be the case of the publication of retail sales in the United States on Wednesday, and especially of the consumer price index, the same day. An obviously critical figure for market operators who continue to count on rate cuts of 50 basis points, or 0.5 percentage points, from the American Federal Reserve this year.

“The markets are awaiting the US inflation figure for April published on Wednesday. This will be the first test after the reassuring meeting of the Fed (American Federal Reserve, Editor’s note) at the beginning of the month, when Powell indicated that the next change in the key rate should always be downward, even if the first reduction should occur later than they thought until then,” explains Xavier Chapard of LBPAM.

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Sanofi on the rise

“This has allowed a clear decline in interest rates, which have fallen in the United States by almost 20 basis points (0.2 percentage points, Editor’s note) since the start of the month. We believe that the uncertainty on American rates (and therefore other American assets) remains high, hence our preference for European bonds and equities, especially as the economic recovery is confirmed in Europe”, he continues.

On the business side, Cisco, Allianz, Burberry and Walmart will publish their accounts this week. As for French companies, Vallourec, Elior, Scor and Ubisoft will deliver financial results.

This Monday, the automobile groups performed well, Stellantis gained 3.7% and Renault gained 2.2%. Aeronautics lost ground, Airbus fell 1.2% and Safran dropped 1.4%.

Sanofi gained 2.4% after announcing more than 1 billion euros of additional investments in France. The group also indicated that the American health regulator had granted Dupixent, its blockbuster, priority review for a potential indication in the treatment of chronic rhinosinusitis with nasal polyposis in adolescents.

On other markets, the euro lost 0.2% against the dollar to 1.0795 dollars. Oil, for its part, is rising slightly. The July contract on North Sea Brent gained 0.4% to $83.15 per barrel, while the June contract on WTI listed in New York advanced 0.7% to $78.80 per barrel.