The Paris Bourse erased its initial jump as investors tried to assess the implications of a stronger-than-expected US jobs report on the Fed’s interest rate strategy. Especially since the increase in hourly wages reached 5.7% over one year in January, against 4.7% in December. Expectations of monetary tightening have also strengthened in the eurozone, where inflation hit a record high in January.
Around noon, the Bedroom 40 lost 0.22% to 6,935.78 points in a business volume of 870 million euros. March futures contracts on US indices oscillate between equilibrium and a decline of 0.2%.
In the euro zone, the ECB can no longer rule out monetary tightening this year. Klaas Knot, a member of the board of governors of the central bank, has also indicated that he expects a rate hike in October. ” We are not in the same situation as the United States, where inflation has internal causes he said on Dutch public television on Sunday, adding that in Europe, most of the inflation comes from abroad, and we can’t do much about it “. 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
” A record amount of support is about to be pulled from the global economy “Said Andrew Sheets, strategist at Morgan Stanley. He added that US bank economists expect major central banks to reduce the size of their balance sheets by some $2 trillion in one year from May.
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 2.2%. 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).
ArcelorMittal gains 2.9%. Morgan Stanley reiterated its buy recommendation on the steelmaker’s title. The latter would also have joined the ranks of candidates for the takeover of the renewable energy platform Spring Energy in order to decarbonize its production.
Sanofi rises 1.3%. 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 0.9%. 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.
Conversely, Korian gives up 3.2% and Orpea loses another 7.6%. Equita downgraded the first from “purchase” to “keep”, while the second remains weakened by accusations of abuse in its Ephads in France.