At the end of a hectic week, the Paris Stock Exchange regained a few points in a flat market. The decline in oil prices is a support factor, while Wall Street hesitates in opening. Investors are limiting initiatives as the weekend approaches while trying to digest the announcements made at the three summits held Thursday in Europe around the Russian invasion of Ukraine.
Geopolitical tensions are fueling fears that inflation will spiral out of control amid soaring commodity prices. After the new surge in prices reflected by the PMI activity indices in the euro zone, the business climate has also deteriorated in Germany. The index compiled by the Ifo institute fell 7.7 points to 90.8 in March. Falling from 98.4 to 85.5, the expectations component for its part shows the largest monthly drop in its history. The institute points out that German bosses believe that the German economy is facing a period of great uncertainty.
Shortly after 2:30 p.m., the Bedroom 40 gained 0.44% to 6,584.90 points in a limited business volume of 1.28 billion euros. . In New York, the Dow Jones takes 0.17% and the Nasdaq Composite yields 0.21%.
Erratic moves on oil
The barrel of Brent from the North Sea fell back below 113 dollars having touched 139.13 on March 7, which was its highest level since its all-time high of 147.50 in July 2008. Beyond the mobilization of the NATO and the support of Western countries for Ukraine, the United States and the European Union formalized this morning an agreement on additional American deliveries of liquefied natural gas to Europe. The countries of the Old Continent are seeking to reduce their addiction to Russian hydrocarbons and Germany plans in particular to be virtually independent of Russian gas by mid-2024. Berlin is also seeking to halve its imports of Russian oil by the end of the first half, reports Der Spiegel citing a document from the Ministry of the Economy.
New sanctions have certainly been announced against Russian companies, particularly in the defense sector, as well as against parliamentarians and oligarchs, but European leaders have avoided tackling imports of Russian oil, gas and coal . Prices thus remain tossed between fears of shortages and the risk of a slowdown in global growth.
On the other hand, Russian gold is clearly targeted, insofar as Moscow intends to use the precious metal to circumvent international sanctions. Russia is thus seeking to “allow” so-called “unfriendly” countries to pay for their gas purchases in gold. On the spot market, the ounce of precious metal fell 2.5% to 1,955.20 dollars while remaining at its highest levels since March 16.
Luxury and defense shine
Most of the activity is focused on luxury stocks, again in demand after a lackluster week. Hermes increased by 3.8% and LVMH by 2.1%.
Technology stocks are also in the spotlight in the wake of the Nasdaq Composite’s nearly 2% rise yesterday. STMicroelectronics earns 2%, Capgemini 1.5% and Worldline 1.2%.
Thales gains 1.7%. The defense electronics group reported a firm order by Greece, ” one more option “, of three defense and intervention frigates with Naval Group, of which it owns 35%. No amount of the contract has been disclosed.
Dassault Aviation increased by 3.9%. The aeronautical group announced the acquisition by Greece of six additional Rafale planes, specifying that this contract would bring to 24 the number of Rafales used by the Greek air force.
TF1 takes 2.3% and M6 2%. The first announced that in the event of its merger project with M6, the two groups would buy France Télévisions’ 33.33% stake in Salto for a value of 45 million euros, which would allow them to hold 100% of the streaming platform.