The Paris Bourse is expected to open sharply lower on Monday, at the start of a week that will be marked by a meeting of the American central bank, and while China worries investors.
The futures contract for the star CAC 40 index fell by 1.51% around forty minutes before the opening of the session. Last week ended with a decline of 0.72% of the index, which lost 1.89% during the month of April.
The New York Stock Exchange recorded even more severe losses on Friday, the Dow Jones dropped 2.77%, or nearly 5% over the month of April. For its part, the Nasdaq tumbled more than 4% and more than 13% in April, its worst fall since 2008.
This correction follows the publication of corporate results below expectations (Amazon.com, Apple or Intel) and new expectations of an even more restrictive approach from the Federal Reserve (Fed), explains John Plassard , investment specialist at Mirabaud.
This first session of the week does not start on the right foot, with concerns over China, where manufacturing activity fell in April to its lowest level since February 2020 due to the confinements of the country’s major cities.
In Beijing, the authorities announced on Saturday to strengthen measures intended to fight against Covid-19 by making new tests compulsory to access certain public places.
Investors have especially in mind the monetary policy meeting of Tuesday and Wednesday of the US central bank.
After a 0.25 percentage point increase in its key rates in March, the Federal Reserve will this time, barring any surprises, lead to an increase of half a percentage point, to bring them within a range of 0.75 % 1%.
The institution should also mark the beginning of the reduction of its balance sheet, all in an attempt to fight against inflation at its highest for 40 years in the United States.
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According to Stephen Innes of SPI AM, operators are repositioning themselves to a comfortable level to limit their risk exposure ahead of the monetary policy committee meeting.
Publications of quarterly corporate results continue this week, with notably BNP Paribas on Tuesday, Airbus on Wednesday, and ArcelorMittal on Thursday.
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