(BFM Bourse) – The Paris Stock Exchange is starting the week on a cautious note in reaction to disappointing statistics in Germany and before the publication on Thursday of inflation figures in the United States for July. The CAC 40 is down 0.6% on Monday.
Quiet start to the week on the Paris Stock Exchange. The CAC 40 lost 0.6% to 7271.62 points at midday on Monday. Volumes are anemic, only 470 million euros have changed hands since the opening of the Paris market. A more than classic torpor in this second week of August, for lack of participants on the stock markets.
German industrial production figures for June also call for caution. Against all expectations, it contracted by 1.5% in June compared to the previous month, while a more contained fall of 0.5% was expected by the market.
On Friday, the Parisian index had risen by 0.75% after the better than expected results of Crédit Agricole and a report on employment in the United States appreciated by the markets. He had put forward a number of job creations below expectations, at 187,000 jobs in July where analysts expected 200,000 new hires over the period.
The June balance was also revised down to 185,000 from 209,000 previously estimated. For its part, the unemployment rate fell by 0.1 point to 3.5%. The average hourly wage, on the other hand, rose by 0.4% over one month, ie an increase of 4.4% over one year. The market was hoping for a lull in hourly wages. Inflationary pressures therefore remain topical, which should prompt the US Federal Reserve to continue its movement towards monetary normalization, despite weaker than expected job creations.
In this regard, Michelle Bowman, one of the Fed’s officials said that its members remain “ready to raise the federal funds rate at an upcoming meeting if the data indicates that progress on inflation has stalled. “, during a speech before the Kansas Bankers Association.
After the US employment data published last Friday, it is the inflation figures in the United States scheduled for Thursday that will set the pace for the stock market week. Expected like milk on the fire, this statistic will give indications on the orientation of the future monetary policy of the American Federal Reserve.
Business news at a standstill
On the business front, the animation is weak or almost non-existent during this summer break. Among the rare companies to communicate on Monday, we can cite Poujoulat, which is now losing 1.5% after having started the session on the rise. The European leader in combustion smoke evacuation devices announced an 8.5% increase in turnover between April and June 2023, compared to the same period in the 2022/2023 financial year.
Visiativ gleans 0.6% after taking over at the helm of the Commercial Court of Toulouse, the assets of Techform, a pure-player software publisher of technical and commercial configuration.
On the foreign exchange market, the euro lost 0.5% to 1.0972 dollars. As for oil prices, they are pausing after their recent rise. Brent is currently down 1% to $85.34 while WTI is down 1.10% to $81.92.
Sabrina Sadgui – ©2023 BFM Bourse