(BFM Bourse) – The Parisian index begins the week slightly down below 8,100 points, on the cusp of several company results and the Federal Reserve’s decision on Wednesday evening.
The Paris Stock Exchange took a slight breath, with the CAC 40 closing down 0.29% this Monday, back below 8,100 points at 8,065.15 points. Last week, the flagship Parisian index gained 0.82%.
The markets took note of inflation data in two European countries, Germany and Spain. Across the Rhine, consumer prices increased as expected, by 2.2% year-on-year in April, while in Spain, inflation accelerated to 3.3% year-on-year, still for the month of April. . The figures for the entire euro zone are scheduled for Tuesday.
The meeting of the week remains the meeting of the American Federal Reserve (Fed) on Wednesday evening.
“On both sides of the Atlantic, market participants are watching central banks like a rabbit watches a snake. Interpreting inflation data, ECB statements and Fed minutes overshadows everything else,” notes Alexander Raviol, partner and CIO Derivative Solutions at Lupus Alpha.
“As for estimating the date of the first cut in interest rates in Europe and the United States, it has become a national sport. Despite the current persistence of inflation, there is no doubt that the change in the direction of interest rates is imminent in the United States. We suspect central banks of being the drivers of market expectations and this has structural reasons… and it is for stocks,” continues. he.
“We expect a continued restrictive bias at the US Federal Reserve meeting this week. Fed Chair Jerome Powell will likely note that it will take longer than expected to gain the confidence to cut rates and recent economic data suggests later and fewer reductions”, adds Xiao Cui, senior economist at Pictet Wealth Management
Many corporate results are expected this week, including those from Apple and Amazon in the United States, Novo Nordisk, Shell, and Adidas in Europe.
On the CAC 40, Stellantis, Thales, Teleperformance, and even Capgemini will deliver their publications this week.
Vivendi has already published its turnover this Monday, which left the market unmoved (-0.1%). The stock market is more focused on the plan to split the company into several listed companies.
Atos jumped 19.2%, the market being reassured to see the French State submit an offer of 700 million to 1 billion euros to take over certain activities, and therefore bring new money to a group which has badly needed.
On other markets, the euro gained 0.2% against the dollar to 1.0718 dollars. Oil is falling. The June contract on North Sea Brent fell 0.9% to $87.43 per barrel, while the June contract on WTI listed in New York lost 1.1% to $82.91 per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
