The Paris Stock Exchange grabs a few points at the dawn of a busy week in terms of company publications and macroeconomic events, with the highlight being the monetary decision of the ECB and third quarter GDP in France , Germany and the United States. But before that, the market will have to deal with the S&P global PMI indices of activity in the private sector in October in the euro zone, this morning, and across the Atlantic this afternoon.
Around 9:30 a.m., the Bedroom 40 takes 0.29% to 6,052.17 points after a peak at 6,116.20 (+ 1.33%), in a volume of 270 million euros.
In China, growth reached 3.9% in the third quarter, exceeding analysts’ expectations, which had forecast an increase of 3.3%. But the zero Covid policy, the collapse of the real estate market and the risks of a global recession are undermining Beijing’s initiatives intended to promote “common prosperity” in 2023. The publication of the GDP had been postponed due to the XXth Congress of the Communist Party. Unsurprisingly, Xi Jinping was reappointed for a third term and tightened his grip on the party’s governing body.
Movements on the yen and the pound sterling
Asian markets are moving in mixed order this morning, with the Tokyo Stock Exchange’s Nikkei 225 nonetheless advancing 0.3% following rumors of intervention by the Bank of Japan to support the yen against the dollar. According to FinancialTimesthe Bank of Japan would have sold for 30 billion dollars to remedy the weakness of the yen, which strongly increased the cost of imports.
The pound is also seeing sharp swings following Boris Johnson’s withdrawal from the Conservative Party leadership race to succeed Liss Truss as Prime Minister. The British currency rose to 1.1409 dollars before falling back around 1.1356 (-0.2%). For the time being, only Rishi Sunak and the Minister for Relations with Parliament Penny Mordaunt have applied. Former Finance Minister Rishi Sunak is the favourite. Candidates have until 2pm (London time) to secure the sponsorship of 100 MPs. If a single suitor obtains these 100 supports, he will automatically be appointed Prime Minister. Otherwise, a first ballot to decide between the two, or three candidates at most, is scheduled for 6 p.m. (7 p.m. in Paris).
Towards a debate within the Fed
Overall, financial markets followed suit on Wall Street, which completed its best week since June, driven by expectations of a slowdown in the pace of Fed rate hikes following information from the wall street journal evoking the fears of some officials that the rise in rates would weigh too heavily on activity. The yield on the 10-year US bond eased to 4.1467% this morning, against 4.21% at the close on Friday. St. Louis Fed President James Bullard and his San Francisco colleague Mary Daly insisted on Friday that the Federal Reserve should debate how high to take the Fed funds rate and the timing of a cut in the Fed funds rate. extent of the rise in the cost of money.
Beyond the ECB’s monetary decision on Thursday, which should result in a 75 basis point tightening of the refi rate, the week will be animated by the publication of the third quarter results of Gafam (Alphabet, Apple, Amazon, Meta and Microsoft), as well as by the turnover of 18 components of the Cac 40.
Imerys will exploit a lithium deposit in France
Biggest rise in SRD, Imerys increased by 3.7%. The specialist in minerals for industry has announced the commissioning by 2027 of a lithium deposit in France in the Allier department.
Solvay appreciated by 2.7%. The specialty chemicals group raised its full-year guidance, citing higher-than-expected third-quarter profit.
Renault on the contrary loses 2.5%. The discussions between the French manufacturer and Nissan on the investment of the Japanese group in the electric entity of its French partner stumble on the sharing of technologies, reports Reuters, citing sources familiar with the matter.