The Paris Stock Exchange was up slightly by 0.08% in early trading on Monday, hampered by the rise in oil prices, and after a week of strong growth.
After a lower opening, the flagship CAC 40 index advanced by 5.06 points to 6,625.30 points around 9:30 a.m. On Friday, it ended up 0.12%, for a gain of 5.75% over the week, the largest since November 2020.
Like the other European indices, the Paris market had to adapt to the sharp rise in oil prices, of more than 4%.
An attack by Houthi rebels has targeted a facility of oil giant Aramco Jizan in southern Saudi Arabia, the Riyadh-led coalition in Yemen said in a statement on Saturday.
The attack is another reminder of the current uncertainty in global oil markets, said CMC Markets analyst Michael Hewson.
Oil prices have fluctuated widely since the start of the war in Ukraine, peaking near $140 a barrel for Brent on March 7, before prices fell below $100 over the past week.
The prices of raw materials then have repercussions on the general economy, while inflation in Western economies is already at its highest for forty years.
This led the American central bank (Federal Reserve, Fed) to raise its key rates last week for the first time since 2018. The president of the institution, Jerome Powell, must speak during the day.
Investors must be reassured about the economic outlook and the consequences of the series of rate hikes to come, say analysts at Saxo Bank.
Investors are finally hanging on to developments in the war in Ukraine. The country on Monday rejected the Kremlin’s ultimatum demanding the capitulation of the besieged city of Mariupol, while a new bombardment kyiv made at least eight dead, devastating the surroundings of a commercial center of the capital.
New boss at Vallourec
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Seamless tube manufacturer Vallourec announced on Monday that it has appointed Philippe Guillemot as CEO to accelerate the company’s transformation and growth trajectory. The action rose 4.81% to 10.67 euros. Jefferies analysts, for example, have maintained their long position on the company.
weakened EDF
The electrician fell 1.93% to 8.88 euros, one of the worst performances of the expanded SBF 120 index, after announcing on Friday the launch of a capital increase of more than 3.1 billion euros, including 2, 7 billion will be provided by the state.
Raw materials in sight
Companies linked to raw materials progressed, such as TotalEnergies (+1.05% 45.99 euros) and ArcelorMittal (+2.29% 29.02 euros) on the CAC 40, or even CGG (+5.25% 0.94 euros) and Eramet (+2.76% 134.10 euros), on the SBF 120.