The Paris Stock Exchange opened up 0.33% on Monday before quickly settling around equilibrium, still digesting the US jobs report on Friday a week before the next meeting of the US Federal Reserve.
The star CAC 40 index fell slightly by 0.09% or 6.63 points, 7,263.57 points around 10:15 a.m. At the last closing, Friday, the index had ended sharply up 1.87%, however marking a decline over the week of 0.66%.
Investors are keeping their eyes glued to the state of the economy and its response to monetary tightening in major countries, commented Sebastian Paris Horvitz, director of research at La Banque Postale AM.
Friday, the markets were surprised by the announcement of nearly 340,000 jobs created in May in the United States, against less than 200,000 expected, continues Sebastian Paris Horvitz.
At the same time, wage growth slowed and the unemployment rate increased (3.7% in May against 3.4% the previous month).
These economic data are mixed and with the approach of the next meeting of the Fed, scheduled for June 13 and 14, investors are trying to estimate the probability of an upcoming hike in the key rates of the powerful American institution.
Markets believe there is about a one in three chance of a rate hike next week, Deutsche Bank analysts say, but perhaps the upcoming CPI inflation release, due 13 June, Editor’s note) could be the main factor likely to tilt these probabilities in favor of an increase if inflation does not show signs of running out of steam.
In addition, doubts about the strength of the Chinese recovery persist, adds the analyst from La Banque Postale AM. More government stimulus is expected to support activity, but the consensus is still for a moderate boost, he said.
In France, the activity of the French private sector increased slightly in May, still driven by the dynamism of the services sector which compensates for the sluggishness of industry, confirmed the firm S&P Global.
Luxury in decline
Luxury stocks, sensitive to the economic situation in China, were in decline. LVMH lost 0.97% 822.70 euros, Herms 0.99% 1937.20 euros and Kering 0.69% 503.20 euros.
Oil on the rise
This weekend, following an OPEC+ Vienna meeting, Saudi Arabia pledged to cut its oil production by one million barrels a day from July. That would bring the country’s production level back to around 9 million barrels a day next month, the lowest level in years, said John Plassard, investment specialist at Mirabaud.
After these announcements, oil rebounded, as did the values of the sector. TotalEnergies gained 1.21% 55.85 euros, Technip Energies 2.85% 19.51 euros and Vallourec 2.30% 10.66 euros around 10:10 a.m.