(BFM Bourse) – The CAC 40 fell 0.41% on Monday after a rather sluggish session. Market operators are preparing above all for the major deadlines to come in the coming days.
The calm before the storm for the market? The Paris Stock Exchange, like other European markets, did not make a big wave for this first day of the week. The flagship index of the Parisian market ended down 0.41% to 6,650.55 points.
Clearly the market preferred to stick to its guns on the eve of “‘the week of all dangers’ or ‘the most important week of the year'”, as John Plassard, of Mirabaud, writes in a note released Monday morning.
“For much of the month, European and US markets saw their advances stalled from their October lows, as we come to the end of the year and ahead of three major central bank meetings later this week,” said Michael Hewson of CMC Markets.
The Fed coming Wednesday
Among the biggest events on the market agenda are, across the Atlantic, the publication of November inflation figures in the United States on Tuesday, as well as the meeting of the American Federal Reserve (Fed) on Tuesday. and Wednesday. According to data from the CME Group, investors are pricing around 75% on a 50 basis point (0.50 percentage point) U.S. central bank rate hike and 25% on a 75 basis point hike.
“The publication of inflation tomorrow will not be enough to change the strategy of the American central bankers, who should continue their tightening. Thus, maintaining a position of caution still seems to us to be appropriate in our asset allocations”, considers Sebastian Paris Horvitz, of La Banque Postale Asset Management.
In Europe, the Bank of England and the European Central Bank will follow suit on Thursday by holding their monetary policy meeting in turn. On the same day, the central banks of Mexico, Norway and the Philippines will also take a monetary policy decision.
Dassault Systèmes at the top of the CAC 40
As for values, Sanofi finally lost 0.4% after announcing that it was abandoning the takeover of Irish biotech Horizons Limited, an operation that could have exceeded 20 billion dollars.
Airbus gained 0.4% following information from Reuters reporting a potential mega-order from Air India for the European group as well as for its American competitor Boeing. This order would be for 400 single-aisle aircraft and at least 100 jumbo jets.
The biggest increase in the CAC 40 was however signed by Dassault Systèmes, with an increase of 1.8%. The title may have been carried by Morgan Stanley, which in its outlook for digital services companies for 2023 confirmed its advice to “overweight” the title.
Accor lost 3.8%, suffering an underperforming downgrade from Jefferies. L’Oréal for its part fell 1.5%, suffering from the same movement on the part of Royal Bank of Canada.
Excluding SBF 120, Navya jumped more than 140% after securing non-dilutive funding from a Bahrain-based company.
On the other markets, the euro is stable against the dollar, at 1.0527 dollars. Oil prices are on the rise. North Sea Brent crude for February delivery fell 2.8% to $78.24 a barrel, while New York-listed WTI rose 3.7% to $73.65 a barrel.
Julien Marion – ©2022 BFM Bourse