The Paris Stock Exchange takes a breather on Monday after a jump of 5.75% last week. Investors remain cautious about the evolution of the conflict in Ukraine after the failure of a new session of talks this weekend. Progress in the negotiations is less than we “hoped for”, Kremlin spokesman Dmitry Peskov said. A new attempt at talks is scheduled for Monday, according to a Ukrainian official.
The market is watching crude prices, as the barrel of Brent continues to rebound with a gain of more than 4% to 112.78 dollars, bringing the rise to almost 15% compared to the day before the invasion of Ukraine. amid fears of supply shortages. Especially since Yemeni Houthi militias armed by Iran have attacked oil installations in Saudi Arabia. These attacks could affect oil deliveries, the kingdom has warned, reports the official SPA agency, quoting an official from the Ministry of Energy. European Union foreign ministers will discuss further sanctions against Russia on Monday, including against its oil sector. The dependence of the Old Continent on Russian gas has prompted several countries to diversify their supplies, this is particularly the case of Germany, which has signed a long-term energy agreement with Qatar, relating in particular to the supply of liquefied natural gas, without giving more details.
Shortly after 2 p.m., the Bedroom 40 lost 0.12% to 6,612.25 points in a business volume of 1.18 billion euros. The contracts future June on US indices fell between 0.1% and 0.4%. Boeing fell 4.7% on the New York forecourt following the crash of a China Eastern Airlines 737 in southeast China with 132 people on board. In Paris, Saffronwhich supplies Boeing with LEAP engines, fell 2.7%.
Zelensky demands talks with Moscow
This weekend, President Zelensky called for in-depth talks with Moscow. Ukrainian Deputy Prime Minister Iryna Vereshchuk, meanwhile, rejected a Russian ultimatum demanding the surrender of the beleaguered port city of Mariupol. This ultimatum expired at 5:30 a.m. local this morning (3:30 a.m. in Paris).
For his part, Joe Biden was to discuss the situation in Ukraine by telephone with Emmanuel Macron, Olaf Scholz, Mario Draghi and Boris Johnson at the end of the morning. He is also expected to meet his NATO and G7 allies in Brussels on Thursday before heading to Poland on Friday.
The world’s major stock indices saw their best weekly performance since 2020 last week, with the Cac 40 returning to nearly 2% of its level before the outbreak of war in Ukraine. The question now is whether this rebound is sustainable. “The bear market rallies are the most violent. The rise in stocks last week was one of the steepest in history. If it could still continue, we remain convinced that we remain in a bear market and are in favor of using it to position ourselves more defensively. writes Michael Wilson of Morgan Stanley in a note quoted by CNBC.
The policies of the European Central Bank and the Federal Reserve will diverge in the near future, the war in Ukraine having very different effects on the economies of the European Union and the United States, announced Christine Lagarde. ” Our two economies are at different points in the economic cycle, even before the war in Ukraine said Christine Lagarde during a conference at the Institut Montaigne in Paris. ” For geographical reasons, Europe is much more exposed [à la guerre] that the United States “, she said. It has also minimized the risk of stagflation in the euro zone.
On the bond market, the yield of the 10-year US bond tightened by 8 basis points to 2.2240%, while that of the 2-year maturity rose above 2% for the first time. since May 2019 a few hours before Jerome Powell’s speech at the annual conference of the National Association for Business Economics (NABE). Atlanta Fed Chairman Raphael Bostic says he favors six quarter-point rate hikes this year and two more in 2023, according to remarks released ahead of his NABE speech. . A more conciliatory attitude than that of most of his colleagues.
The US central bank last Wednesday announced a cycle of monetary tightening which should bring the Fed funds rate down to between 1.75% and 3% by the end of the year. Several other Fed officials are also due to speak throughout the week.
Exane’s favorite Thales in the defense sector
Renault gains 0.7%. The diamond brand has resumed production at its Moscow factory, Reuters reports, citing a spokesperson for the group. Avtovaz, the main Russian car manufacturer controlled by the French group, on the other hand announced that it was partially interrupting its production until March 25 due to a shortage of electronic components.
TotalEnergies gains 1% in the wake of the rise in crude prices. CGG (+5%) and Vallourec (+3%) follow. The seamless tube manufacturer has announced the appointment of Philippe Guillemot as CEO to accelerate the group’s transformation and growth trajectory. Among the other values linked to raw materials, ArcelorMittal goes up 3%.
EssilorLuxottica takes 0.7% after an increase in recommendation from HSBC, from “hold” to “buy”. Among other analyst notes, Thales appreciates by 2%. The title is the preferred value of Exane BNP Paribas, to “outperformance” on the value, in the defense sector.