The Paris Stock Exchange is starting the week on the right foot, thus continuing its momentum of the last few days, marked by its first weekly rise in four weeks. Wall Street also rebounded, ending a three-week streak of straight declines. Financial stocks are continuing to rise this morning in anticipation of continued monetary tightening by the European Central Bank, which raised its key rates by 75 basis points last Thursday. Axa, BNP Paribas, Agricultural credit and Societe Generale earn between 1.6% and 2.7%.
Around 10:30 a.m., the Bedroom 40 increased by 1.13% to 6,282.26 points in a business volume of 380 million euros.
The euro hit a three-week high of $1.0199 after hitting a 20-year low of 0.9865 last Tuesday. Bundesbank President Joachim Nagel has said he favors further policy tightening at the European Central Bank and several other leaders of the institution, including Isabel Schnabel, are due to speak this week. The single currency is also supported by the recent successes of Ukrainian forces in the reconquest of certain territories from the Russian army.
Inflation not affecting Fed policy
The market is also preparing for the publication, tomorrow, of last month’s inflation figures in the United States at the time when the American Federal Reserve enters a period of “blackout”, before the meeting of its monetary policy committee of September 20 and 21.
Economists anticipate a slowdown in the rise in consumer prices across the Atlantic, which should stand at 8% over one year in August, after 8.5% in July. But such an easing of inflation is not likely to change the resolve of the Fed, with several officials recently indicating that a 75 basis point hike in the Fed funds rate next week remains the most likely option. Governor Christopher Waller said he was in favor of further tightening ” significant and St. Louis Fed President James Bullard warned a market that “ underestimated “, according to him, the prospect of permanently high rates, adding that he leaned ” more strongly to a third consecutive rate hike of three-quarters of a percentage point.
” A bad surprise on the US CPI would probably be more concerning and could lead to a further decline in the dollarwarns Charu Chanana, strategist at Saxo Capital Markets, on Bloomberg TV. This represents a potential risk to watch out for, especially this week. “, she adds.
Preliminary indicators down for Orpea
On the commodities front, a barrel of Brent from the North Sea has erased its initial losses and is now gaining 0.5% to 92.98 dollars. TotalEnergies takes advantage of this with a gain of 1.5%. Vallourec advance for its part of 7.1%.
Orpea fall of more than 19%. The Ephad manager has published its preliminary financial indicators for the first half: the gross operating margin rate (Ebitdar) is down to 18.5%, against 24.9% a year earlier. Impairment of intangible assets could be recorded for an amount between 170 and 220 million euros. The financial underperformance should extend into the second half, the group says. In its wake, Korian down 4%.