The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange lost 0.55% on Monday, showing caution in the face of rising oil prices after the surprise and massive offensive, which began on Saturday, by the Palestinian Islamist movement Hamas against Israel.
The flagship CAC 40 index fell 38.75 points to 7,021.40 points. On Friday, the CAC 40 finished up 0.88%, returning to the 7,000 point mark after three consecutive sessions below this threshold.
The stock market session was dictated by movements on the oil market, where barrel prices rose by more than 5%, before the variations subsided.
Around 4:20 p.m. GMT, the price of a barrel of North Sea Brent for delivery in December gained 3.85% to $87.86 and a barrel of American WTI, due in November, gained 4.06% to $86.15. .
This increase in the price of a barrel “has an implication on inflation”, underlines Nicolas Budin, head of equity management in Europe at Myria AM.
And while investors have experienced two weeks of tension around the level of interest rates, which are likely to remain high for a long time, any element likely to fuel new inflationary pressures is unwelcome.
“We were in a debate on + Will we have a soft landing or a difficult one, or even no landing? +” of the economy and this rise in oil prices “could change the situation”, warns Mr. Budin.
Since the Hamas attack began on Saturday, more than 700 Israelis have been killed and 2,150 injured, according to the army. On the Palestinian side, 560 people were killed and 2,900 injured, according to local authorities.
Unfortunately, “this is not a new conflict,” adds Mr. Budin.
Furthermore, the week will be marked by the publication of the minutes of the last meeting of the American central bank (Fed) on Wednesday (6:00 p.m. GMT) and the publication on Thursday (12:30 p.m. GMT) of the consumer price index (CPI ) in the United States for September, an indicator closely monitored by the Fed as part of its monetary policy intended to reduce inflation to 2%.
Nicolas Budin adds that “we are entering the phase of company publications, with LVMH tomorrow” (Tuesday). The luxury giant’s results could “answer questions we ask about growth in China”, he notes.
Defense and oil sought after
Defense sector stocks and oil companies were in demand on Monday, in the wake of the war between Israel and Hamas.
The defense and technology group Thales gained 4.69% to 134 euros, Dassault Aviation 4.38% to 181 euros, Safran 0.75% to 145.86 euros.
TotalEnergies increased by 1.74% to 61.39 euros, CGG by 4.97% to 0.67 euros and Vallourec by 4.47% to 10.87 euros.
The journey is dull
Air France-KLM, which announced on Sunday suspending services to Tel Aviv until further notice, fell 8.48% to 11.41 euros. The announcement of an air traffic controllers’ strike and the request for cancellation of 40% of flights scheduled at Paris-Orly on Friday by the General Directorate of Civil Aviation did not help.
Aéroports de Paris shares fell 2.51% to 104.80 euros.
The hotelier Accor also lost 2.87% to 30.83 euros and Pierre et Vacances 2.14% to 1.19 euros.
© 2023 AFP
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