The Paris Stock Exchange is expected to rise at the opening on Monday, driven by new hope for a drop in tensions with the organization of a summit between the United States and Russia on the subject of the Ukrainian crisis.
The futures contract for the star CAC 40 index rose by 0.70% around forty minutes before the opening of the session. It had closed down 0.25% on Friday, ending the week with losses of 1.17%.
Russian Presidents Vladimir Putin and US President Joe Biden agreed on Monday to meet at a summit on the condition that an invasion of Ukraine has not taken place by then, a surprise announcement that comes as a war was given for imminent.
The uptrend in the stock market only came after this tentative agreement, notes CMC Markets analyst Michael Hewson.
Indeed, while the markets were already on edge at the end of last week, the increase in tensions over the weekend only increased the pressure, he observes.
Russia and Ukraine continued on Sunday to accuse each other of being responsible for the new fighting in the Ukrainian separatist east.
Westerners fear that the intensification of fighting for several days on the front line will serve as a pretext for Russia, which has massed 150,000 soldiers on the Ukrainian borders, to launch a massive attack against its pro-Western neighbor.
Prudence pushes investors to favor assets perceived as safer, such as gold, or government bonds, to the detriment of more risky assets such as equities.
On the macroeconomic front, the day will be dominated by PMI indicators for manufacturing activity and services for euro zone countries. US markets will remain closed due to a holiday in the United States.
Later in the week, the US PCE inflation index, followed by the US Federal Reserve, is also expected.
The American central bank is preparing to launch a series of increases in its key rates to fight against inflation, a movement whose magnitude is debated among officials of the institution, although the idea of a first increase in sweetness seems to be gaining ground.
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Finally, the results season continues in Europe, with a final week full of publications.
Among the values follow Monday
Worldline: the French specialist in electronic payments announced on Monday that it had entered into exclusive negotiations to sell, during the second half of the year, its payment terminal activities to the Apollo fund, valued at 2.3 billion euros.
Faurecia: the automotive supplier had a difficult second year in 2021 with a turnover of 15.6 billion euros and a small net loss of 79 million euros, as it prepares to buy the German Hella .
Icade: the real estate subsidiary of Caisse des Dépts, has published 2021 results up and beyond its objectives, driven by its health branch, which is not affected in the short term by the scandal around nursing homes in France.