(BFM Bourse) – The CAC 40 lost some ground on Monday, while no agreement has yet been reached on the American debt ceiling.
The Paris Stock Exchange starts the week timidly. At mid-session on Monday, the CAC 40 fell 0.15% to 7480.05 points, investors continuing to follow the progress of negotiations on the US debt ceiling, which are struggling to move forward.
No agreement was reached while the president, Joe Biden, was in Tokyo this weekend for the G7 summit. The American head of state must meet the leader of the Republicans in the House of Representatives, Kevin McCarthy, this Monday. The American president had judged Sunday “unacceptable” the proposals of the Republicans, who demand significant federal budget cuts for an agreement to succeed.
“We remain of the opinion that the worst will be avoided. There will be no default. But the uncertainty pushes us to remain cautious and therefore not to run behind the market”, underlines Sebastian Paris Horvitz, of La Banque Postal Asset Management.
No excessive fear
“At this point equity markets are not overly concerned about issues surrounding the US debt ceiling, and investors believe the Federal Reserve [Fed] US will begin a pause in its rate hikes. The statements this weekend from Neel Kashkari, the president of the Minneapolis Fed, are rather likely to reinforce this hypothesis.
Neel Kashkari, a member of the Fed on the side of the “hawks”, i.e. the central bankers more favorable to a restrictive monetary policy, told the wall street journal that he could support a status quo on rates at the next meeting in June.
On equities, relatively little movement is notable, given the sparse news on Monday. Ubisoft however signs a remarkable rebound (+5%) after being heckled Friday by a downgrading of UBS to “sell”.
Air France-KLM (+2%) can also benefit from a positive cross-reading of the results of Ryanair which wins 2.1% in Dublin. The Irish airline recorded a jump in its results over its entire 2022-2023 financial year, with a profit of 1.43 billion euros, close to its all-time high.
On other markets, the euro gained 0.16% against the dollar at 1.0824 dollars. Oil prices are not changing much. July’s North Sea Brent contract fell 0.2% to $75.41 a barrel while the same-maturity WTI contract listed on the New York Stock Exchange lost 0.1% to $71.45 a barrel. barrel.
Julien Marion – ©2023 BFM Bourse