After a weekly gain of nearly 2%, the Paris Stock Exchange is starting the week in a slight decline, hampered by the prospect of new Western sanctions against Russia in the face of accusations of war crimes in Ukraine. Discussions between Russian and Ukrainian negotiators should nevertheless resume on Monday. Observers are pessimistic about possible progress in these negotiations despite concessions made last week by kyiv regarding the country’s neutrality.
At 10:35 a.m., the Bedroom 40 lost 0.14% 6,674.66 points in a business volume of 490 million euros.
The European Union is considering imposing new sanctions against Moscow following the broadcast of images of massacres against the civilian population in the town of Boutcha, on the outskirts of kyiv, after the departure of Russian troops. In a message posted on Twitter on Sunday, the President of the European Council Charles Michel indicated that new retaliatory measures would be adopted against Russia. European Union ambassadors are expected to meet on Wednesday to discuss a new sanctions package, reports the FinancialTimes citing diplomatic sources.
Russian chief negotiator Vladimir Medinsky said on Sunday that the conditions for a meeting between Vladimir Putin and Volodymyr Zelensky have not yet been met for lack of a draft written peace agreement. He nevertheless announced that the discussions should resume by videoconference on Monday, information which has not been confirmed by the Ukrainian authorities.
High volatility on the interest rate markets
Fixed income markets remain under pressure in anticipation of a slowdown in growth against a backdrop of soaring prices. The yield on the 2-year US bond is tending to 2.44282%, against 2.3824% for the 10-year maturity. It also rose above the yield of the 30-year bond for the first time since 2007. This inversion of the curve reflects fears of recession in anticipation of a tightening of the policy of the American Federal Reserve, which is expected to raise rates by half a point in May. The Fed is due to release the “minutes” of its March monetary policy committee meeting on Wednesday. The report should also give indications on the reduction of the amount of its balance sheet.
While volatility remains high on the bond markets, falling purchases and the feeling that there is no alternative to equities remains favorable to the latter, especially since the solidity of the job market in the United States United States reflects that of the US economy in an environment where real interest rates remain negative due to ultra-accommodative monetary policies.
Banks struggling, defense sought again
Banking and automotive stocks are falling again. BNP Paribas, Agricultural credit and Societe Generale yield between 1.3% and 2%, while Stellantis plaice of 0.8%.
Technology stocks are also losing ground, such as Worldline (-2.6%) and STMicroelectronics (-0.6%).
Biggest increase in the Cac 40, Thales increased by 2.5%. Another defense value, Dassault Aviation wins 2.9%.
Sanofi takes 0.5% after announcing that the Food and Drug Administration (FDA), the US health authority, had agreed to give priority review to its drug Dupixent for the treatment of patients 12 years and older with esophagitis with eosinophils.