The Paris stock exchange fell 0.40% on Monday, pending eurozone inflation data on Monday and then a US central bank meeting later in the week.
The CAC 40 stellar index fell 24.95 points to 6,246.94 points around 10:05 am, one hour before the release of euro zone inflation data. The index rose 0.46% on Friday, ending the week positively (+ 6.94%).
Investors are increasingly counting on easing measures taken by central banks to fight inflation.
Signs of slowing inflation in the US and parts of the economy, particularly the US housing market, and recent decisions by central banks in Australia and Canada, which raised rates less than expected, support this hypothesis.
Several Fed officials have also mentioned a slower pace of rate hikes to come in recent weeks.
The outlook blew the New York Stock Exchange indices on Friday, with the top three up more than 2% despite poor results posted by the tech sector.
For this month, a 75 basis point rate hike appears to be discounted for all investors.
“Fed watchers are wondering if this month’s rate hike could be the last of this magnitude,” said John Plassard, Mirabaud’s investment specialist.
Mr Plassard believes, however, that the markets may be running a little early. “The inflection of the US monetary institution is unlikely to be close. If so, despite everything, it might seem like a monetary policy mistake,” according to him.
This Monday, investors will take note of inflation data in the euro zone in October, expected to be above 10%, and a first estimate of GDP in the euro zone for the third quarter.
Corporate income statements will continue this week, with Axa, BNP Paribas, Teleperformance, Legrand, Stellantis and Société Générale expected this week in Paris.
Safran stock lost 2.34% to € 111.04, penalized by the lowering of the recommendation on this stock from Citi bank, according to Bloomberg. The French engine and equipment maker saw its revenue rise in the third quarter and revised its revenue forecast for 2022 upwards on Friday.
Chinese puzzle in Stellantis
The French automaker and its Chinese partner GAC have announced the bankruptcy of a joint venture in China, while Stellantis reviews its strategy in the country. Stellantis stock fell 0.31% to € 13.51.
jvi / ys / clc