(News Bulletin 247) – The leading Parisian index ended this first session of the week in the green. The CAC 40 rose 1% to 7,400 points, at the start of a week marked by major events.
The Paris Stock Exchange is enjoying a rebound to start the week. The CAC 40 closed up 0.99% at 7,425.26 points, recovering after having lost 3.65% the previous week.
The leading Parisian index is recovering after being shaken by a disappointing US employment report, as it showed job creations that came out below expectations.
“The August employment report, so eagerly awaited by the markets, did not provide a definitive answer on the extent of the slowdown in the American labor market. This leaves open the question of whether the Fed will begin to reduce its rates next week with a classic cut of 25 basis points (0.25 percentage points), or a more aggressive cut of 50 basis points (0.5 percentage points),” judges Xavier Chapard, strategist at LBPAM.
Investors will have new indications to gauge the health of the American economy with the publication, this Wednesday, of the consumer price index for the month of August.
Still on the macroeconomic front, the European Central Bank will hold its monetary policy conference on Thursday and Goldman Sachs expects a drop of 0.25 percentage points.
Kering and Ubisoft suffer
On the value side, Kering suffered the biggest fall in the CAC 40 on Monday evening, down 2.5%. The luxury group was penalized by two downgrades, from Royal Bank of Canada (to “sector performance”) and Barclays (to “underweight”).
Ubisoft returned 7.1% as Cantor Fitzgerald lowered its rating on the stock from “overweight” to “neutral.”
On the upside, SMCP rebounded by 7.7%, sought in reaction to a court decision favorable to the creditors of the “accessible luxury” specialist.
On other markets, the euro lost 0.4% against the dollar to 1.1041 dollars. Oil, for its part, advanced. The November contract on North Sea Brent gained 0.3% to 71.30 dollars per barrel, while the November contract on WTI listed in New York advanced 0.6% to 68.09 dollars per barrel.
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