(BFM Bourse) – The Paris Stock Exchange confirms its lead in a market lacking in news. The CAC 40 rose by 0.2% to 7,200 points, benefiting from a little animation from its heavyweight Totalenergies which is benefiting from the rebound in black gold prices.
A session without much interest on the Paris Stock Exchange. The CAC 40 continues its climb beyond 7,200 points without enthusiasm, to 7,246.93 points, thanks to an increase of 0.18%.
Last week, the flagship Parisian index recorded an increase of 2.7% driven by signs of slowing inflation whether in Europe or the United States. This caused a clear lull on the bond market. And this trend reflects investors’ hopes for the end of restrictive monetary policies next year.
The day’s agenda was sparse this Monday, both in terms of macroeconomics and businesses. Investors learned in the morning of an 11% decline year-on-year in producer prices in Germany. The markets are therefore currently counting on a rate cut from the ECB in April, followed by that of the Federal Reserve in May and that of the Bank of England (BoE) in August, underlines Reuters.
Fed minutes in sight
“The hypothesis of a soft-landing, a soft landing of the economy, is reinforced with inflation under control. The American CPI (consumer price index, editor’s note) actually reached +3.2% in year-on-year, against a forecast of +3.3%. In the process, the 10-year yield fell by 16 basis points (0.16 percentage point, Editor’s note) and expectations of a status quo at the meeting of the December 13 are now 100%”, underlines Antoine Fraysse-Soulier, head of market analysis at eToro.
However, some Fed officials wanted to calm the overwhelming enthusiasm of the markets, like Mary Daly and Susan Collins, who recently recalled that the battle against inflation had not yet been completely won.
In this context, the markets will be attentive to the minutes of the American Federal Reserve this Tuesday, before taking note of the October durable goods orders the next day. Note that Wall Street will be closed on Thursday for Thanksgiving celebrations, and stock trading on the New York Stock Exchange will only take place for half a session the next day, Friday November 24.
New record for Microsoft
On the business side, animation can be found in American tech. Microsoft recorded a historic high at the opening of markets on Wall Street, after the arrival of ex-CEO of OpenAI Sam Altman. The Redmond group, whose capitalization stands at $2,798 billion, is also approaching Apple, which is currently the largest capitalization in the world ($2,973 billion).
Nvidia is close to its stock market records from this summer at $502.66. The graphics card giant is in demand, before a highly anticipated publication of its quarterly results Tuesday evening after the market.
The rebound in oil
Among the biggest increases in the CAC 40, we find TotalEnergies (+1.9%) which benefited from the rebound in black gold prices before an important meeting of OPEC and its allies on November 26. The market is indeed anticipating further production cuts from Saudi Arabia, which pushes the barrel of Brent from the North Sea for delivery in January by 2.7% to 82.79 dollars, while the barrel of West Texas Intermediate (WTI) for delivery in December rose 2.8% to $78.16.
On the foreign exchange market side, the euro (+0.3%) at 1.0940 dollars is gaining ground with the weakness of the greenback, following expectations concerning a future rate cut by the American Federal Reserve.
Sabrina Sadgui – ©2023 BFM Bourse