(CercleFinance.com) – This is undoubtedly ‘the fact of the day’: the barrel of oil is down -4.5% in the US (WTI at $70.5) and in Europe (Brent at 75.60) while Arabia reduces its prices in the face of sluggish demand.
What was only a consolidation in oil prices this morning (-2%) turned into a real downturn this afternoon.
Such a drop relieves inflationary expectations which had strengthened last week with the diversion of tankers and maritime freight from Asia via South Africa, access to the Suez Canal via the Red Sea appearing insecure.
With the beginning of an easing of rates (this was not the case this morning) and an unexpected acceleration of Wall Street upwards, the Paris Stock Exchange returned to the green (+0.25% to 7,435) after having yielded almost 0.5% this morning, in the wake of TotalEnergies (-2.7%)… but the volumes remain anecdotal (E1.05 billion at 5:05 p.m.)
The positive reopening of Wall Street (S&P500 +0.5%, Nasdaq +1%) has re-motivated some buyers, the Euro-Stoxx50 is up +0.35%.
The week which begins will be punctuated by the highly scrutinized publication of inflation in the United States, scheduled for Thursday, and by the kick-off of the results season of American companies, which will be given the next day with the publications of the major banking groups JPMorgan Chase, Bank of America and Wells Fargo.
The Parisian market had a difficult first week for the New Year, dropping around 1.6% in four days, which led it to break the important technical threshold of 7,500 points.
Investors notably had to digest a series of economic indicators, US employment in the lead, having tempered the prospect of a rapid reduction in interest rates.
From a historical perspective, stock market performance in January is generally a good indicator of what to expect for the rest of the year.
On the energy market, oil prices are clearly consolidating (-4.6% following the rebate granted by Arabia) after their strong increase over the past week, due to a new episode of localized geopolitical tensions in the Red Sea .
Brent fell by 4.2% to 75.6 dollars per barrel and the euro remained stable against the greenback, around $1.0960/E.
On the bond compartment, the yield on Treasury bonds welcomes the fall of the ‘WTI’: the US ten-year relaxes by -6Pts below 4% (score of 3.975%), while its German equivalent displays -1Pt to 2, 1340%, our OATs relax by -1.5Pt towards 2.6670.
In French company news, TF1 and Free, a subsidiary of Iliad, announce the signing of a new global distribution agreement which takes effect from January 2024 and will allow Freebox subscribers (starting with those with Freebox Pop) to benefit from the new free TF1+ service.
Casino announces that the European Commission authorized on January 5, under merger control, its takeover by the consortium composed of EP Equity Investment III sàrl (company controlled by Daniel Křetínský), Fimalac and Attestor.
Finally, TotalEnergies announces that the Libra consortium has made the final investment decision to develop an innovative natural gas and CO2 separation and reinjection unit for the Brazilian Mero field, in which it holds a 19.3 %.
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