All world stock markets opened in the green on Monday thanks to the fall in barrel prices. Israel responded to Iranian attacks, but without hitting oil sites, a move that had previously driven up oil prices.
The markets no longer made it a priority, but the threat remained underlying the stock market news. Israel spared Iranian oil sites during its strikes on Saturday October 26. A situation which had nevertheless been envisaged and which had caused oil prices to rise quite suddenly in recent weeks. The Paris Stock Exchange is therefore moving significantly higher on Monday, taking advantage of the fall in oil prices, in a relieved market. The CAC 40 advanced strongly as it gained 0.56% around 11 a.m., up 41.40 points to 7,538.94 points. Friday, the CAC 40 finished stable (+0.08%).
Israeli response did not target oil sites in Iran
Investors are relieved that Israeli strikes on Saturday against military targets in Iran spared the country's oil installations. Oil prices are therefore down sharply on Monday “because Israeli airstrikes on Iran did not hit oil infrastructure, deflating the geopolitical risk premium that kept oil prices high”comments Stephen Innes, Spi AM analyst.
“The icing on the cake is that Iran has not announced any reaction, a sign of de-escalation – or at least of an absence of resurgence of tensions in the region”comments Ipek Ozkardeskaya, analyst at Swissquote Bank. “Geopolitical tensions that were driving oil prices” on the rise “went up in smoke”she continued. In detail, on the oil market around 11 a.m., the price of a barrel of Brent from the North Sea fell by 5.76%, to 71.27 dollars and its American equivalent, the barrel of West Texas Intermediate (WTI) plunged. by 6.09%, to 67.41 dollars. On the Parisian coast, TotalEnergies, the main French oil company, was penalized and lost 1.78% to 59.20 euros.
Furthermore, investors are preparing for a week with a dense economic agenda. “US to release latest employment figures, third quarter GDP and PCE index”the favorite inflation gauge of the American central bank (Fed), summarizes Ipek Ozkardeskaya, analyst at Swissquote Bank. The approach of the American elections and the future meeting of the Fed for a possible rate cut only reinforces the tension on the markets. On the Old Continent, the preliminary inflation figures for the month of October and the GDP of the euro zone for the third quarter will attract attention.
OPmobility resists the automotive situation
The automotive supplier OPmobility continued to resist in a weak automobile market in the third quarter with a turnover up slightly (+2.9% to 2.5 billion euros) over the period, according to the results published on Monday . OPmobility “took a record level of orders in the history of the group” over the last few years and “it’s starting to materialize in sales”welcomed the general director of the equipment manufacturer Laurent Favre, during a conference call. The group is resisting the weakness of the European market in particular thanks to production launches with Renault in France and Stellantis in Poland. In a sector where satisfaction is rare at the moment, the stock jumped 7.68% to 9.68 euros.
JCDecaux renounces an acquisition, Fnac Darty buys Unieuro
JCDecaux, the world leader in display advertising, has indicated that it has decided not to buy the activities in Spain of its American competitor Clear Channel, which now intends to continue its operations there. An announcement which reassured the markets since the stock gained 0.55% around 11 a.m. For its part, the French group Fnac Darty, specialist in the distribution of electronic and household appliances, has bought, with the help of its first shareholder the Czech billionaire Daniel Kretinsky, the sector leader in Italy Unieuro. Analysts are cautious about this merger-acquisition and investors are even more hesitant since the company fell by 4.49% on the Paris Stock Exchange.
