The Paris Stock Exchange rose Monday morning by 0.69% at the start of a week where investors will be particularly attentive to inflation in the United States and the way in which the American central bank (Fed) will take it into account to define its monetary policy.
Around 10:10 a.m., the CAC 40 index took 44.66 points to 6,517.01 points. It had recorded gains last week despite worries about geopolitical tensions in Asia and fears of a continuation of significant monetary tightening by the Fed.
This week, market sentiment will depend on US inflation. If it decreases, the Fed could redirect its rate hikes more moderately, encouraging the markets to rebound, summarizes Ipek Ozkardeskaya, analyst at SwissQuote.
On Saturday, an official of the American central bank pleaded for the monetary institution to continue raising its key rates sharply until inflation actually subsides.
Increases of a similar size should be considered until we see inflation come down in a consistent, meaningful and sustained manner, Michelle Bowman, a Fed governor, told the Kansas Bankers Association.
It is very unlikely that the inflation figures expected this week go in the direction of an attenuation of the aggressive monetary tightening of the Fed, estimates Stephen Innes, analyst of SPI Asset management.
Concerning France more directly, the rating agency Fitch Ratings maintained the AA rating for France’s long-term debt on Friday, still with a negative outlook because of the pandemic, which has increased public spending.
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The rating assigned to France is the third best on the Fitch rating scale, which has 22 levels. It corresponds to a high quality director.
Veolia is sorting
The French environmental services giant Veolia will sell the waste activities of Suez, a group that it largely absorbed, in the United Kingdom for 2.4 billion euros, in order to meet the main obligations of the authority British competition. This relief was worth to him to progress on the stock market by 1.79% around 10:10 a.m., 24.42 euros.
Unconvincing treatment for Poxel
Pharmacy research company Poxel announced in a press release on Monday extending its financing horizon for its operations and its investment needs until at least February 2023, subject to the restructuring of its debt and the establishment of a line of equity financing. However, its price lost 2.87% around 10:10 a.m., 2.03 euros.