After a fall of more than 19% over the first nine months of the year, the Paris Stock Exchange continues to decline in this first session of the fourth quarter. The risk of a sharp reduction in production by OPEC and the setbacks of Credit Suisse are indeed added to the prospect of vigorous action by central banks to try to regain control of inflation.
Around 9:30 a.m., the Bedroom 40 fell 1.16% to 5,695.5 points.
A barrel of North Sea Brent crude rises more than 2% following reports from news agencies that OPEC+ delegates are set to debate a cut of more than 1 million barrels per barrel on Wednesday. day of their production. Oil prices have fallen more than 30% since the peak last March, after Russia invaded Ukraine, which worries producing countries which fear a drop in demand. In Paris, TotalEnergies gain 1.2%, Vallourec 2.6% and Technip Energies 1.8%.
Credit Suisse tries to reassure
Investors should also watch developments regarding the financial problems of Credit Suisse, whose stock hit an all-time low on Friday. Bank officials have worked to reassure key customers and shareholders, according to the FinancialTimes. The cost of credit default swaps (CDS) jumped around 15% last week to levels not seen since 2009. The bank also denied press reports that it approached investors. investors for a capital increase. In Zurich, Credit Suisse fell by more than 10%.
In the foreign exchange market, the pound sterling is up 0.3% after the announcement by the Minister of Finance, Kwasi Kwarteng, that the British government has abandoned the elimination of the upper bracket of the tax on Income. This project, criticized even within the ranks of the Conservative Party, had caused the fall of the pound and a surge in the yield on government bonds (gilt), forcing the Bank of England to intervene to buy long-term debt.
To be monitored on Monday, the final PMI S&P Global indices for the euro zone, as well as their ISM equivalent in the United States. But the highlight of the week is scheduled for Friday with the September US jobs report.
Air France-KLM degraded
Note, finally, that the Brazilians will be called on October 31 to decide between Lula and Jair Bolsonaro in the second round of the presidential election. After counting approximately 97% of the ballots, Lula won 47.9% of the vote, against 43.7% for the outgoing president. A result much tighter than announced by the polls.
Tech stocks are struggling again. Capgemini loses 3.2%, Dassault Systems 3.1% and Worldline 2.1%.
Air France-KLM gives up 6.3%. HSBC downgraded the airline’s title from “buy” to “keep”.