The Paris Stock Exchange is expected to be stable at the opening on Monday, in a session which will be marked by tensions between Iran and Israel, after two negative weekly reports in a row.
The futures contract for the flagship CAC 40 index gained 0.06% around forty minutes before the start of the session. On Friday, the index lost 12.91 points to finish 8,010.83 points, falling for the fifth time in six sessions. It thus recorded a second drop in a row over the week (-0.63%), which had not happened to it since January 1st.
The main American indices ended sharply lower on Friday, strongly influenced by the results of the big banks and by the escalation of tensions in the Middle East, explains John Plassard, investment specialist for Mirabaud.
The main Western central banks have raised their key rates to record highs to slow inflation but markets fear that geopolitical tensions in the Middle East will revive the price of raw materials and that inflation will rise again.
Iran launched more than 200 drones and missiles against Israel on Saturday night, in response to a strike against its consulate in Damascus. Israel claimed to have killed 99% of them along the way, with the help of its Western allies.
isolated event or precursor to a larger conflict? The answer to this question will determine market sentiment in the coming days, believes Stephen Innes of SPI Asset Management.
For John Plassard, Iran’s role in the conflict is crucial, because it controls the Strait of Hormuz, a critical maritime passage through which approximately 20 to 30% of the world’s oil stocks transit.
A worsening conflict could cause energy costs for businesses and households to skyrocket due to supply interruptions, he said.
However, the rise in energy prices would hinder the efforts of central banks to manage inflationary pressures, concludes John Plassard.
On the macroeconomic agenda of the session, investors will look to the publication of industrial production in the euro zone in February, retail sales in the United States in March as well as to some interventions by European and American central bankers.
Among the values to follow
BNP Paribas: the banking group announced on Sunday to buy back the 9% share held by the Chinese Fosun in the Belgian insurer Ageas for around 730 million euros.