(CercleFinance.com) – The Paris Stock Exchange should opt for a moderate rise on Monday at the start of a session that promises to be calm after the turbulent news of recent weeks.
Around 8:15 a.m., the future contract on the CAC 40 index – February expiry – advanced by 41.5 points to 6990.5 points, announcing a start to the session in the green.
Following the much better than expected figure for job creation in the United States, the Paris market ended Friday’s session on a decline of nearly 0.8% to 6951 points.
The weekly results are also negative, the CAC having lost 0.2% over the week as a whole.
A sign of the decline in risk, the safest assets have been less popular for a few days. The yield on 10-year Treasuries is thus moving around 1.93%, a two-year high, while gold remains stable at 1809.3 an ounce.
As in Europe, a certain calm also seems to have returned to the US equity markets, as illustrated by the CBOE volatility measurement index, which confirms its decline to 23.2 points.
European markets should change little on Monday at the start of a week that promises to be calm, with few major American indicators on the agenda for the next few days.
The consumer price figures in the United States, expected on Thursday, should a priori be the high point of the week.
‘If US inflation surprises on the upside, we believe a 50 basis point Fed rate hike in March would be possible,’ analysts at Danske Bank warn.
While a relatively calm week is shaping up for Wall Street in terms of data, the earnings season is also starting to draw to a close.
The quarterly accounts of Pfizer, bp or Coca-Cola will however be scrutinized closely over the coming days.
Of the 60% of S&P 500 companies that have reported performance so far, 78% have done better than expected, with numbers 4.7% above consensus average estimates.
By way of comparison, the historical ratio is around 70% of companies exceeding expectations by an average of 5%.
Stakeholders will also keep a close eye on the debates around the coming monetary tightening, which remains the main driver of the financial markets at the start of 2022.
In a note published last week, UBS strategists recommended that investors build positions adapted to this change in the stock market paradigm.
They explain that they favor equities in the euro zone, as well as securities that provide protection against future rate hikes, in particular through financial stocks.
“After a difficult month of January, we are positioning ourselves for a rise in the equity markets and maintaining a cyclical bias geared towards exposure to defensive segments,” summarizes the Swiss private bank.
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