The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange rose 0.32% Monday morning, with investor morale appearing solid before the meeting of the American central bank (Fed) and new company results.
Around 10:10 a.m., the flagship CAC 40 index advanced by 25.31 points, to 8,113.55 points. The Parisian rating increased by 0.89% on Friday, to finish at 8,088.24 points, and by 0.82% over the whole of last week.
The main event this week will be the meeting of the monetary policy committee of the US Federal Reserve (Fed) on Tuesday and Wednesday.
According to Sebastian Paris Horvitz, research director at LBPAM, the Fed should “validate (…) the need to maintain the current policy for longer so that it acts on the economy.”
“This would be the response to the more robust growth data which has dominated since the start of the year and to the stronger than expected inflation figures,” he continues.
Inflation accelerated in March in the United States to reach 2.7% over one year, according to the PCE index favored by the Fed.
The Fed should say that “its confidence in the sustainable return of inflation towards 2% has diminished”, according to Nancy Vanden Houten, economist for Oxford Economics.
At the start of the year, markets expected up to six key rate cuts from the Fed in 2024 starting in March, but they have largely revised these forecasts and no longer expect a rate cut before September.
On Monday, investors will scrutinize the first inflation figures for April in Germany. In Spain, inflation accelerated slightly in April, reaching 3.3% year-on-year, according to a first estimate.
Publications of company results also continue this week, with ArcelorMittal, Capgemini, Thales, Teleperformance, Axa, Crédit Agricole, Société Générale and Legrand among the CAC 40 companies.
In the United States, investors will analyze the accounts of Amazon on Tuesday, Apple on Thursday, but also Coca-Cola, Pfizer and AMD.
The State in support of Atos
The action of the French IT group Atos jumped 14.94%, to 2.19 euros, after the Minister of the Economy Bruno Le Maire announced on Sunday the sending of a letter of intent with a view to acquire all the sovereign activities of the group.
In financial difficulty, Atos clarified on Monday that it now needed 1.1 billion euros in liquidity to finance its activity in 2024-2025, compared to 600 million euros previously estimated.
The stock, which was worth around 75 euros on January 1, 2021, has lost 97% of its value since then and has fallen 70% since the start of the year.
Euronext CAC40