(CercleFinance.com) – The Paris Stock Exchange is expected to rise Monday at the opening, the adoption of new measures to support the economy in China reassuring investors and alleviating fears of recession.
Around 8:15 a.m., the ‘future’ contract – September delivery – on the CAC 40 index climbed 60.5 points to 7,308.5 points, suggesting a return to the 7,300 point zone at the opening.
China’s announcement of a halving of the stock market transaction tax to reinvigorate capital markets and boost investor confidence is partly allaying fears of a sharp slowdown in the global economy.
Following these announcements, Chinese markets ended higher, with the CSI 300 index of large caps in mainland China recovering 1.6% on Monday.
Despite growing fears surrounding global growth, the Parisian market managed to gain 0.9% last week, which allows it to post a gain of more than 11% since the start of the year. .
A series of disappointing indicators in Europe, led by the PMI, fueled concerns about the health of the economy, concerns reinforced by the sharp slowdown in activity observed in Germany.
The unaccommodating tone adopted by Fed Chairman Jerome Powell on Friday at the Jackson Hole summit also clouded investor sentiment.
The day’s session should remain calm thanks to a lighter agenda for both corporate results and economic statistics, especially as the London Stock Exchange will remain closed for the ‘Summer Bank Holiday’.
But doubts about global growth should remain the red thread of the week on the markets, with several statistics expected, including the
employment figures in the United States on Friday, still very closely followed.
Also on the program, a highly anticipated first estimate of consumer prices in the euro zone for the month of August, which will fall on Thursday.
On Friday, the New York Stock Exchange ended up despite the firm tone of Jerome Powell’s speech, which seems to close the door to an upcoming drop in Fed rates.
The Dow Jones index gained 0.7% and the Nasdaq more than 0.9%.
Over the past week, the two indices have experienced contrasting trends, the Dow Jones having fallen by 0.4% and the Nasdaq having gained more than 2%, which allows it to cross the bar of 30% increase this year.
The yield on ten-year Treasuries fell to less than 4.24% on Monday,
after reaching last week a plus of 16, beyond 4.36%.
In Europe, the ten-year German Bund yield is holding around 2.56%, which seems to end its yo-yo movements of the past few weeks.
Despite fears about global growth, crude oil prices are moving
up slightly on Monday, supported by encouraging news from China.
The barrel of Brent is moving at more than 84.6 dollars a barrel (+0.2%) and that of American light crude above 80 dollars (+0.3%).
Copyright (c) 2023 CercleFinance.com. All rights reserved.