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CAC40: beginning of the week under the sign of caution


(CercleFinance.com) – After gaining up to 1% shortly after the opening, the Paris Stock Exchange has gradually lost altitude and now only gains about 0.2%, around 6,300 points, investors finally playing the card of caution after the publication last week of lackluster indicators regarding the economic situation.

In this context, investors are still trying to find the right positioning between high inflation, reduction of central banks and struggling global growth.

In this respect, the business climate is improving a little in Germany, according to the Ifo institute index which reached 93 in May, after 91.9 the previous month, an increase driven by a better assessment of the current situation while expectations remain more or less stable.

“The German economy is showing resilience in the face of the problems of inflation, bottlenecks and the war in Ukraine”, comments the Munich-based institute, adding that “there is no observable signal of a recession.

Other data concerning the economic situation will be scrutinized by investors this week: the latest European PMIs will be on Tuesday’s program and the Fed’s ‘minutes’ will be unveiled on Wednesday.

‘Markets will also watch the development of monkeypox disease, a type of viral infection against which the WHO warned this weekend as 92 cases have already been identified in 12 countries which are not usually accustomed to this pathology’, underline the teams of Danske Bank.

Despite the bad news that tends to accumulate, some strategists remain hopeful that investors are finally starting to buy the lows (‘buy the dip’), a state of mind that has often taken markets out of business in the past.

‘There are many companies today that are posting results well above those of before the pandemic, while their stock markets are still evolving at levels close to or below those of 2019’, we do so remark in Raymond James.

In French company news, Sanofi announced on Friday evening that the United States FDA has approved its Dupixent (dupilumab) 300 mg once weekly for the treatment of eosinophilic esophagitis in patients from the age of 12 years old, weighing at least 40 kg.

Getlink announces that Europorte, its rail freight subsidiary, will modernize its fleet of Euro4000 locomotives by investing in innovative ETCS (European Train Control System) rail signaling technology.

Finally, Gaussin says it is strengthening its business in North America by signing an exclusive 20-year agreement with Charbone Hydrogen for the local assembly and marketing of zero-emission APM and ATM vehicles in Canada.

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