The Cac 40 starts this new week in a good way, and even better than the future contracts let it augur. While these, half an hour from the first exchanges, gave the flagship index of the place a small increase of 0.2%, the Cac 40 appears to be up 1% to return to 6,550 points. This Whit Monday is a public holiday in France, but the markets are open.
At the end of last week, the Dow Jones, S&P 500 and Nasdaq Composite ended down 1.05% to 2.47% as strong May jobs data reduced expectations. hopes that the Federal Reserve will pause in the tightening of its monetary policy. The United States created 390,000 jobs in the non-agricultural sector last month, more than the 328,000 anticipated by the consensus, with no unpleasant surprises on wages, up 5.2% over one year, as expected. A rebound is expected this afternoon across the Atlantic.
ECB and US inflation in sight
It is in this context that we will closely monitor the inflation figures which will be published at the end of the week in the United States (Friday at 2:30 p.m.). According to the Bloomberg consensus, consumer price inflation should have stabilized over one year in May, at 8.3%, while having increased by 0.5% over one month. Excluding food and energy, that is to say excluding volatile elements, a decline to 5.9% over one year is nevertheless expected, after 6.2% in April. Also to follow, on the same day, the evolution of the consumer confidence index according to the University of Michigan.
Another highlight of the week, Thursday, with the monetary policy decision of the European Central Bank and the press conference of its president Christine Lagarde. The ECB is expected to announce the end of asset purchases and set the stage for a first rate hike in July. The uncertainty relates to the magnitude of the movement. Will the tightening of the refinancing rate (refi rate) be 25 or 50 basis points? Opinions seem to be divided within the monetary institution, which promises great debates between doves and hawks. Inflation in the euro zone increased further in May, to 8.1%, against 7.4% in April.
In China, the Caixin index of purchasing managers in services was unveiled on Monday at 41.4 points, a strong improvement compared to 36.2 points in April, but still in the contraction zone. On the oil front, Brent is at $120 a barrel.
Socgen raised, EDF downgraded
Side values, the automobile is the first sector to benefit from the purchases of the day. Faurecia, Valeo, Aramis Group and Renault are in the Top 5 of the SRD, with increases of 2.7% to 4.8%.
The other action on the list is Societe Generale (+2.4%), which benefits from a change in recommendation from Jefferies, from “keep” to “buy” to aim for 35 euros, against 25 euros previously.
Conversely, EDFdowngraded from “keep” to “reduce” by HSBC, lost just over 3%.