Market: volatility confirms its comeback


(CercleFinance.com) – The Paris Stock Exchange is expected to be green on Monday at the opening in the wake of the rebound operated by Wall Street on Friday, even if investors should opt for a certain caution at the start of a week which is announcement once again very dense.

Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – February delivery – rose 66 points to 7029 points, suggesting a timid recovery after the 1.5% loss suffered last week.

Investors, who had welcomed Apple’s good results on Friday, should plunge back into their current worries, starting with the prospect of a rate hike in the United States and the rise in geopolitical tensions.

The sudden resurgence of volatility on the equity markets since the start of the year has taken many investors by surprise, accustomed to the regularly upward trajectory of the stock markets, even in times of pandemic.

With the return of volatility, 2022 promises to be more complex for investors given the reduced support from the Federal Reserve.

In this environment, many market participants should begin to take a more active approach to investing and actively rotate their portfolios as conditions change.

Main meeting of the week, the monetary policy meeting of the ECB, Thursday, should not give rise to major announcements from the institution.

“The arguments in favor of the normalization of the monetary policy of the ECB are strengthening but a rate hike in 2022 is very unlikely”, we recall from the side of Generali Investments.

Investors are also counting on the series of economic indicators expected in the coming days to dispel their current concerns about the economy.

The preliminary flash estimate of the euro zone GDP for the fourth quarter, which will be published today, should allow them to know more about the impact of Omicron on the level of activity.

In terms of results, several results from leading companies are on the agenda for the coming days, including Alphabet, Amazon, AMD, ExxonMobil, Meta and Nokia on the menu.

So far, companies have released better-than-expected results, albeit to a lesser extent than previous quarters and more in line with long-term trends.

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