(CercleFinance.com) – The Paris Stock Exchange posted a decline of 0.7% this morning, around 7050 points, notably penalized by the decline of Renault, which lost nearly 3% while the Losange began discussions with Nissan.
Caution also dominates as the week will be mainly driven by multiple results publications: more than 100 components of the S&P 500, including six of the Dow Jones index, to publish their fourth quarter accounts.
So far, the earnings season has been rather disappointing as of the 29% of S&P 500 companies reporting results, 69% have exceeded Wall Street expectations.
In addition to this flurry of results, the week will be marked by the meeting of the Federal Reserve’s monetary policy committee, which will start tomorrow.
The gradual slowdown in inflation and the resilience of the US economy have recently reduced the chances of seeing the Fed continue on the path of restrictive monetary tightening.
After having already reduced the pace of its rate hikes in December, reduced to 50 basis points instead of 75, the Fed should only raise its rates by 25 basis points on Wednesday.
Beyond the Fed meeting, the other highlight of the week will take place on Thursday, with the monetary policy decision of the European Central Bank (ECB).
If a rate hike of 50 basis points is widely anticipated at the end of its board of governors, investors will carefully scrutinize the words of its president, Christine Lagarde.
‘All attention will be on the announcements for the sequel: what pace in March? what terminal level for the deposit rate and over what horizon?’, comments Julien Russo, portfolio manager at Swiss Life Asset Managers France.
In corporate news, Renault Group announces that it has made progress in its discussions with Nissan Motor on the definition of the new bases of their partnership: agreements are being finalized for a transaction which will remain subject to the approval of the Boards of Directors .
They are thus considering operational projects ‘with high value creation’, and new initiatives to strengthen their strategic agility, including a possible investment by Nissan in Ampere, a pure player in electricity and software founded by Renault.
Sanofi announces that Brussels has extended the marketing authorization (MA) of its Dupixent in the EU, making it the first and only targeted drug indicated expressly for the treatment of eosinophilic esophagitis in Europe and the United States -United.
Orpea announces the resumption of discussions with a group of third-party French investors led by Caisse des Dépôts et Consignations, and a group of financial creditors holding approximately 50% of its unsecured debt, amounting to 3.8 billion euros. euros.
Saint-Gobain announced on Monday the finalization of the acquisition of Termica San Luis, an Argentine stone wool specialist, an operation aimed at strengthening its presence in the country.
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