(CercleFinance.com) – The Paris Stock Exchange is expected to open on an undecided note on Monday morning, with a slightly bullish bias, investors inclined to be cautious as the indicators published last week painted a less than rosy picture of the economy .
Around 8:15 am, the ‘future’ contract on the CAC 40 index – which has now switched to the June deadline – advances by 77.5 points to 6314.5 points, announcing a rather favorable start to the session.
Driven by China’s decision to reduce the prime rate on its loans, the Paris market ended Friday’s session with a modest gain of 0.2%, a score ultimately quite disappointing given the trajectory it posted in the morning.
Investors are still trying to find the right positioning in the face of inflation that remains high, central banks that reduce their sails and global growth that seems to be increasingly struggling.
In this respect, the Ifo index of the business climate in Germany for the month of May, expected to drop to 90 against 91.8 in April, should be published today at the end of the morning.
Other data concerning the economic situation will be scrutinized by investors this week: the latest European PMIs will be on Tuesday’s program and the Fed’s ‘minutes’ will be unveiled on Wednesday.
‘Markets will also watch the development of monkeypox disease, a type of viral infection against which the WHO warned this weekend as 92 cases have already been identified in 12 countries which are not usually accustomed to this pathology’, underline the teams of Danske Bank.
Despite the bad news that tends to accumulate, some strategists remain hopeful that investors are finally starting to buy the lows (‘buy the dip’), a state of mind that has often taken markets out of business in the past.
‘There are many companies today that are posting results well above those of before the pandemic, while their stock markets are still evolving at levels close to or below those of 2019’, we do so remark in Raymond James.
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