The Paris Stock Exchange regains color, Italy and currencies at the center of attention


After having accused its worst week since mid-June, the Paris Bourse is picking up colors Monday morning in the wake of the bullish reversal of futures contracts on American indices. The market is also supported by luxury values, hermess, Kering and LVMH earning between 1% and 2.5%. But fears surrounding soaring inflation and a weakening global economy are fueling mistrust of risky assets. The dollar is actively sought after, notably at the expense of the pound sterling, which has reached its historic low against the greenback and is fueling speculation on an intervention by the Bank of England. The euro is weakened by the prospect of a far-right coalition coming to power in Italy.

Shortly after 9:30 a.m., the Bedroom 40 recovers 0.72% to 5,824.85 points in a business volume of 320 million euros.

The alliance formed by Brothers of Italy, by Giorgia Meloni, the League, by Matteo Salvini and Forza Italia, by Silvio Berlusconi is credited with 144 seats in the Senate, according to the latest Rai projections. The majority is set at 104 seats. With 26% of the vote, Giorgia Meloni is well placed to become the first President of the Italian Council.

What about Draghi’s reforms?

The task of the next government promises to be difficult given the many challenges the country must face with galloping inflation, soaring interest rates and the recession looming on the European continent.

Most of Italy’s problems are real no matter who takes the reins of the country, but the biggest fear for investors when it comes to Meloni is whether Italy’s new far-right government will dismiss reforms that Draghi put in place that really helped Italy gain the support of the European Union, considering that Draghi knew very well how to deal with the rest of Europe. The converse is not true with respect to Meloni. observes Ipek Ozkardeskaya of Swissquote.

Central banks in the background

The coming week will also once again be placed under the sign of central banks with the intervention of several Fed and ECB officials, including the hearing of Christine Lagarde by the Economic Affairs Committee of the European Parliament this Monday,

The market will also watch Germany’s Ifo business climate index in the morning, as well as the OECD’s economic forecasts, before focusing later in the week on German inflation, income and US household consumption, and more specifically on the personal consumption expenditure component, the measure of inflation most watched by the Fed.

M6 gained 4.9% after jumping more than 10% in early trade. French businessman Stéphane Courbit and his financial partners have offered 20 euros per share to take over the stake of Bertelsmann, parent company of RTL, in the television group, the Bloomberg agency reported on Sunday.

Elior on the contrary, plunges by almost 15%. JPMorgan lowered its price target from 2.5 to 2 euros.

Valneva erased its initial losses and is now up 4.3%. The group has announced that it is in discussion with a potential partner to obtain funding to develop a second generation vaccine against Covid-19. ” These discussions could continue for several months and may not lead to an agreement. added the biotech company.




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