(CercleFinance.com) – The Paris Stock Exchange should open slightly higher on Monday morning, the market maintaining its bullish course after the records set last week.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – now passed on the March deadline – advanced by 19.5 points to 7380.5 points, suggesting a favorable start to the session.
After having sold up to 1.3% on Friday, the Parisian market had slowly caught up throughout the day to end on a limited decline of around 0.2%, to 7347 points.
Over the past week as a whole, the CAC rose nearly 3%, which enabled it to reach a new all-time high on Thursday at 7387.3 points and bring its gains since then to more than 13%. the beginning of the year.
Investor appetite for risky assets has been fueled by strong corporate results, notably from a few heavyweights like Airbus, Carrefour and Orange.
‘Graphically, the curve is perfect, the resistance zone between 7250 to 7300 points being broken’, underline the graphic analysts of Kiplink, who believe that the CAC still has the potential to continue its upward movement.
However, volumes are expected to be reduced on Monday in the absence of direction from Wall Street, which will be closed all day due to ‘Washington’s Birthday’.
Trade should also remain limited due to the absence of leading economic indicators, with no statistics appearing on today’s agenda.
After a calm day on the macro-economic level on Monday, the rest of the week will be marked by several important events, including the publication tomorrow of the latest PMI activity indices in Europe before the publication on Wednesday of the German Ifo business climate index.
In the immediate future, the only point of tension therefore seems to relate essentially to diplomatic relations between the United States and China and the question of balloon launches.
On the corporate side, the results season is now officially coming to an end since only 61 of the companies in the S&P 500 index, including two components of the Dow Jones, will publish their accounts this week.
Tomorrow, Walmart and Home Depot will reveal their quarterly performance, followed by Nvidia and Moderna by the end of the week.
In Europe, a few big names such as BASF, Capgemini, Engie, Holcim, HSBC, Stellantis or Telefonica will also comply with the exercise over the coming days.
On the bond side, European markets are stabilizing after ending the past week on a positive note, with German Bunds holding around 2.44% and French OATs at 2.90%.
On the currency side, the euro is climbing back to around 1.0690 against the dollar after weakening last Wednesday following inflation data that fueled fears around the evolution of Fed policy.
On the energy front, a barrel of Brent firmed up 0.8% to 83.6 dollars while the US WTI advanced 0.6% to 76.8 dollars.
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