(CercleFinance.com) – The Paris Stock Exchange should open slightly lower on Monday after three sessions of increases, investors opting for caution as new indicators approach and the last publications of the results season.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – which has now switched to the March expiry – fell by 13.5 points to 7778.5 points, synonymous with the start of the session without much change.
Driven by growing optimism about the health of the economy, the Parisian index set new records at the end of last week, well beyond 7,700 points, and now shows a gain of almost 3% since the start of the year.
After the flood of results, statistics and monetary decisions of recent weeks, the week which begins promises to be calmer than the previous ones.
Investors should be reluctant to take any initiatives this Monday as US markets remain closed for the celebration of ‘Washington’s Birthday’.
The week in Europe nevertheless promises to be livened up on Thursday by the preliminary results of S&P Global surveys carried out among purchasing managers (PMI) in the private sector.
If these indices remain below the crucial threshold of 50 points in Germany and France, synonymous with a contraction in activity, economists hope that a clearing will appear in the Old Continent at the start of the year.
With the end of the destocking movement, firming up orders, normalized energy prices and the prospect of future rate cuts, a modest improvement in the economy could begin to materialize.
The market will also take stock of the monetary policy of the American Federal Reserve with the publication, on Wednesday, of the ‘minutes’ of the January meeting, which saw the Fed keep its rates unchanged.
Expectations of rate cuts in the United States have been sharply revised downwards recently in the wake of good figures on growth, employment and inflation.
While the market was counting at the start of the year on a rate cut of 175 basis points from March, only 100 basis points are now expected, and from June.
But the highlight of the week will undoubtedly come on Wednesday evening with the publication of quarterly results from Nvidia, the spearhead of artificial intelligence (AI) whose processors equip many supercomputers.
Analysts expect the chipmaker to beat expectations and raise targets, but with gains already at 46% this year, any disappointment could translate into profit-taking.
If the fourth quarter reporting season begins to wind down, several other US heavyweights will reveal their performances this week, including Walmart and Home Depot.
In Europe, the week still promises to be relatively busy with upcoming announcements from Air Liquide, Carrefour, Nestlé, Mercedes-Benz, AXA, Engie, Deutsche Telekom, Allianz and BASF.
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