Paris and the other European stock markets are losing ground, held back by the decline in the energy and basic resources sectors, the deterioration of manufacturing activity in China raising fears of a slowdown in demand. The market also expects at 11 a.m. the first estimate of inflation in the euro zone in October, as well as the evolution of GDP for the third quarter, also in first approach.
Around 10:30 a.m., the Bedroom 40 lost 0.21% to 6,260.13 points in a business volume of around 400 million euros.
In China, the official manufacturing PMI recorded a surprise drop of 0.9 points to 49.2 in October, thus falling into the contraction zone, weighed down in particular by the zero Covid policy. As a result, a barrel of Brent from the North Sea fell 0.7% to 93.14 dollars.
As expected, the European Central Bank raised its key rates by 75 basis points last Thursday and the rest will depend in part on Monday’s inflation figures. Analysts estimate that consumer price inflation could reach a new high of more than 10%. Dutch central bank president Klaas Knot told Dutch television on Sunday that the ECB may raise the cost of money by 50 to 75 basis points at its December meeting. ” We’re not at halftime yet in the fight against inflation, he warned before adding: We are still in the process of bringing interest rates back to their neutral level, for which we will still need the December meeting. “.
The Fed and US jobs on the front line
Global financial markets have risen recently, buoyed by hopes of a less aggressive approach to interest rates from the Fed starting in December. For now, observers continue to expect a 75 basis point rise in the Fed funds rate after the monetary policy committee meeting on Wednesday. Jim Reid, of Deutsche Bank, nevertheless recalled this morning that the article in the wall street journal at the origin of the anticipations of an inflection of the American central bank ” mentioned that the Fed’s forecasts [en matière de hausse des taux] could be revised upwards in 2023. However, the market focused on the possibilities of a short-term slowdown “.
Expected Friday, October employment figures in the United States could also give an indication for the future. On the bond market, the yield on the 10-year US bond rose above 4% to trade at 4.0634%, an increase of 5 basis points.
On the value side, Orpea and Korian and recover 14% and 4.7% respectively after their plunge last week.
Saffron lost 1.8% as Citi downgraded the title of the engine manufacturer from “purchase” to “neutral”.
Stellantis yields 01%. The manufacturer and its Chinese partner Guangzhou Automobile have announced that they have adopted a resolution authorizing their GAC-FCA joint venture to file for bankruptcy. This loss-making structure was intended to develop the Jeep brand in China.