(CercleFinance.com) – The Paris Stock Exchange should continue its upward movement on Monday morning, as investors prepare to digest many macroeconomic indicators in the days to come.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – November delivery – advanced 25.5 points to 6620.5 points, announcing an extension of the comfortable gains of last week.
The Parisian market had ended Friday’s session with a gain of 0.6% to 6594 points, thus arrogating nearly 2.8% over the past week and limiting its annual loss to some 7.8%.
Wall Street also had a particularly good week, with the Dow Jones gaining 4.2% and the Nasdaq more than 8% over the last five trading days.
Market players are now hoping that the series of US economic indicators expected in the coming days will help maintain the favorable momentum in place since the end of September.
The sharper-than-expected slowdown in inflation in the United States in October eased the pressure on the Fed to pursue its ultra-restrictive monetary policy.
Against a backdrop of concerns about global growth, investors will have to take out their magnifying glass to see more clearly on the economy and the ability of the Fed to orchestrate a ‘soft landing’ of the economy, the dream scenario of the markets at present.
Among the indicators of a week rich in figures, investors will be watching in particular American statistics relating to inflation (producer prices, Tuesday), consumption (retail sales, Wednesday) and real estate (housing starts , Friday).
All of these elements will allow market participants to better guess to what extent, and under what timetable, the Federal Reserve will decide to raise its interest rates again.
On the other hand, indicators confirming the resilience of the US economy could dampen enthusiasm for equities, lest this prompt the Fed to be even more aggressive.
As a high point in the euro zone, the first estimate of third-quarter GDP – which will be released on Tuesday – should show that activity in the region is holding up well for the time being.
Geopolitics will also be on the menu for the week, with the holding of the G20 summit, which will be held tomorrow and the day after tomorrow in Indonesia.
For the time being, the trend should remain driven by the favorable orientation of Chinese stock markets, which are benefiting from the implementation of new anti-Covid measures aimed at ‘minimizing’ the impact of confinement on economic activity and services deemed essential to the population.
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