The Paris Stock Exchange is stabilizing, with resistance on Wall Street at the end of Friday’s session and the 1.5% rise in Chinese markets this morning, after a week of closure for the Lunar New Year celebrations, being the main factor of support .
Investors, however, remain nervous. The stronger-than-expected improvement in the US labor market and the upward revision to the December balance certainly eased fears about the US economy, but it also bolstered expectations of five interest rate hikes. the Fed this year against a backdrop of growing wage pressures. The latter indeed increased by 5.7% over one year in January after 4.9% in December.
An ECB rate hike in October?
Around 10:30 a.m., the Bedroom 40 was stable at 6,950.27 points (-0.02%) in a business volume of 540 million euros.
The prospect of monetary tightening is also affecting Europe, where it is no longer ruled out by the ECB, while the Bank of England announced its second rate hike in two months last Thursday. Klaas Knot, a member of the ECB’s governing council, has also indicated that he expects a rate hike in October, becoming the first to break the silence in the face of a new record for inflation in the euro zone in January. . Christine Lagarde will not fail to be questioned on this point this afternoon by the Commission for Economic and Monetary Affairs of the European Parliament.
US inflation in sight
In this context, the market will monitor Thursday the evolution of consumer prices in January in the United States. They are expected to have risen 7.3% year on year, after 7% in December, which was already a high of nearly 40 years. The question of a 50 basis point hike in the federal funds rate in March is once again on the table. According to the CME Group’s FedWatch tool, based on the evolution of the futures markets, this probability is estimated at 69.2%, while that of a tightening of 50 to 75 points is estimated at 30.8%.
On the geopolitical front, Emmanuel Macron is going to Moscow on Monday to meet his counterpart Vladimir Putin. He previously spoke with Joe Biden about how to respond to the buildup of Russian troops on the Ukrainian border. Jake Sullivan, the White House National Security Adviser, told Fox News Sunday that Russia could intervene in the coming days, weeks, or choose the diplomatic route.
Faurecia targets 33 billion sales in 2025
Faurecia wins 2.9%. The automotive supplier expects sales of more than 33 billion euros in 2025 after the takeover of German Hella, as well as an operating margin of more than 8.5% and a net cash flow of around 1.75 billion euros, said the group, which is now targeting annual cost synergies of 250 million euros on its operating profit (Ebit).
ADP gain 1%. Morgan Stanley raised its recommendation on the airport operator from “underweight” to “line weight”.
Conversely, Korian abandons 58% on the basis of accusations of abuse in nursing homes in France. Equita downgraded the title from “buy” to “hold”. In its wake, Orpea loses another 5.6%.
Within the CAC 40, Sanofi rises 1.4%. The pharmaceutical group announced that the American health authority (FDA), had approved its drug Enjaymo, to reduce the use of red blood cell transfusions to treat hemolysis in adults with cold agglutinin disease (CAD). ).
Eramet takes 1.2%. The mining group has finalized the sale of its subsidiary Eramet Sandouville to the South African group specializing in precious metals Sibanye-Stillwater, for net sale proceeds of 85 million euros.