The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange is hovering around balance in early trading on Monday, at the start of a week marked by numerous central bank meetings which push investors to remain cautious.
The flagship CAC 40 index fell by 0.05%, or 3.96 points, to 8,160.39 points around 9:25 a.m., after opening slightly in the green.
On Friday, it had erased its gains at the very end of the session to finish up barely 0.04% at 8,164.35 points, a level which still constitutes its new historic closing high.
Over the week, it gained 1.70% and twice exceeded 8,200 points during the session.
The main expected event of the session is the final estimate of inflation in the euro zone in February, after a first publication at 2.6% over one year.
But investors are above all waiting for the conclusions of the central bank meetings, notably in Japan on Tuesday and in the United States on Wednesday.
The central bank of Japan could raise its rates for the first time in 17 years, and take them out of the negative zone.
Conversely, in the United States, investors are preparing for rate cuts, although they only expect them to begin in June.
Deutsche Bank economists “expect only minor revisions” in the language of the press release following the meeting. “Growth and unemployment forecasts should not change, but inflation forecasts for 2024 could change”, and weaken the hypothesis of a first cut in key rates in June.
Central banks “must now face stabilizing inflation. Only problem: inflation seems to be stabilizing above their targets,” summarize Natixis analysts.
On the bond market, the interest rate on the 10-year French government bond fell slightly, from 2.88% to 2.87%, after having increased significantly last week.
Deutsche Bank puts Alstom on the right track
For its first session outside the CAC 40, Alstom jumped 8.25% to 13.37 euros. The stock has lost more than 40% of its value over the past year after a series of bad announcements and investor doubts about the group’s cash flow.
The Accor hotel group, which was officially reinstated in the CAC 40 on Monday in place of Alstom, gained 0.43% to 41.88 euros.
Banks on the front
At the start of a week marked by numerous monetary policy decisions, which have benefited them in recent years, the banks were moving forward. Bnp Paribas gained 0.87% to 61.75 euros, Société Générale 0.78% to 23.92 euros and Crédit Agricole 0.18% to 13.04 euros.
© 2024 AFP
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