(CercleFinance.com) – The Paris Stock Exchange should start without much direction on Monday morning, investors being careful not to take too many risks before the publication of the PMI surveys of services in the euro zone while oil prices are rising again following the OPEC meeting.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – June delivery – fell three points to 7268.5 points, signaling an opening around equilibrium.
After a laborious start to the week (-3% between Monday and Wednesday), the Paris market had regained some color on Friday by signing a gain of nearly 1.9% to 7270 points, confirming its timid rebound of 0.5% started Thursday .
The CAC 40 thus managed to limit its decline to 0.6% over the whole of the past week.
By returning above 7105 points, the star index managed to stop its recent downward spiral, which is an encouraging first chart marker, but perhaps insufficient to reverse the heaviness of the moment.
Investors have certainly been reassured by the agreement on the American debt and the ebb of inflation in Europe, but the persistent uncertainties concerning growth keep them in a state of alert.
On the macroeconomic level, the morning in Europe will be punctuated by the results of the monthly surveys of purchasing managers (PMI) on the activity of services in the main economies of the euro zone.
Given the strong demand that exists in sectors such as travel, tourism and IT services, these indicators should show strength as the industry slips deeper into contraction.
Stakeholders know that such a dichotomy does not make the ECB’s task any easier since the good health of services shows that past rate hikes have not yet had any significant effects, which could justify further measures to tighten its monetary policy.
The day will also be marked, in terms of statistics, by industrial producer prices in the euro zone and the ISM for services in the United States.
The return of investors to risky assets is not yet penalizing the bond markets, with the yield on German Bunds shrinking to 2.31% at the very beginning of the week.
On the other side of the Atlantic, the rate of ten-year Treasuries rose towards 3.69%, but showed an easing of 13 points over the whole of the past week.
On the energy side, oil prices are on the rise again as OPEC and its allies, united under the name OPEC+, announced on Sunday their intention to cut production following the recent drop in crude prices.
In the wake of this decision, Brent rose more than 1% to 76.9 dollars a barrel while US light crude (WTI, West Texas Intermediate) rebounded 1.1% above 72.5 dollars.
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