The Paris Bourse is picking up some color after a decline of more than 1% the day before caused by the risk of an energy crisis threatening the Old Continent. Investors are also attentive to the solutions proposed by political leaders in this area.
The Cac 40 has fallen seven times over the last eight sessions in anticipation of a tightening of monetary policy by central banks, and in particular the ECB, to curb inflation while soaring gas prices constitute a brake for both consumers and businesses. The “utilities” strategists at Goldman Sachs estimated on Tuesday that the energy bill of European households should increase by 2,000 billion euros during the peak expected at the start of next year.
Around 2:30 p.m., the Bedroom 40 grabbed 0.31% to 6,112.25 points in a business volume of 770 million euros. The contracts future on American indices gained 0.7%. Wall Street was closed yesterday for Labor Day after falling for the past three weeks.
Slight decline expected for the ISM
Recession fears from soaring gas prices remain strong after shutdown sine die Russian gas deliveries via the Nord Stream 1 gas pipeline, which dragged the euro below the 0.99 dollar threshold on Monday for the first time in 20 years. In Germany, particularly exposed to soaring energy prices, industrial orders fell by 1.1% in July, thus posting their sixth consecutive drop. The market will monitor, this afternoon, the evolution of the ISM index of activity in services in the United States last month. It should have fallen slightly to 55.4 points, after 56.7 in July, while remaining above the critical threshold of 50 points which separates growth and contraction of activity.
Automobile bounce
On the oil front, the barrel of Brent from the North Sea fell 2.1% to 93.16 dollars, the increase following the decision of OPEC + to reduce its production by 100,000 barrels per day being offset by the risk of a drop in demand against the backdrop of confinements in China, where several large cities remain in the grip of drastic health restrictions. Yesterday’s rare increases, TotalEnergies and Vallourec fell by 2.1% and 3.3% respectively. The oil services group CGG loses 3.5%.
Attacked yesterday, equipment manufacturers and car manufacturers are regaining some ground. Faurecia takes 3.3%, Valeo 2.1%, Renault 2.1% and Michelin 1.8%.
Among other cyclical values, Saint Gobain gains 2.8%.
Rising in opening, Casino lose 1%. The French group has announced that its Brazilian subsidiary Grupo Pao de Açucar (GPA) plans to sell to its shareholders around 83% of Grupo Exito, its Colombian division, and to keep a stake of around 13% which could be sold later. The operation comes only three years after the takeover of Exito by GPA, which suggests, according to analysts, that the synergies hoped for from this merger have not been up to par.