The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up slightly up 0.33% on Monday, cautious before a meeting of the American Central Bank and a salvo of corporate results, and slightly hampered by a further drop in Russian gas deliveries.
The star CAC 40 index gained 20.73 points to 6,237.55 points. Last week, the Paris market had gained 3%, up for the third week in a row.
“We are in a hollow session” because of the wait-and-see attitude of investors vis-à-vis the meeting of the American Federal Reserve (Fed) and the publications of company results, commented Florian Allain, manager at Mandarine Gestion.
The fight against inflation will once again be the focus of the Fed’s meeting on Wednesday and Thursday.
The institution should raise its key rates by 75 basis points, “it’s almost certain”, notes Florian Allain, and it doesn’t matter if this will cause a sharp slowdown in the American economy. “A minimal technical recession is practically accepted by American economists”.
A fairly sluggish Monday in terms of results publications also prompted a wait-and-see attitude.
Tuesday morning, LVMH, Dassault Systèmes, Rémy Cointreau or even Lagardère are on the program for the Parisian financial center.
A source of concern for the European economy, the Russian giant Gazprom announced that it would drastically reduce deliveries of Russian gas to Europe on Wednesday via the Nord Stream gas pipeline, arguing the need for maintenance of a turbine. Deliveries will be reduced to around 20% of the pipeline’s capacity, compared to around 40% currently.
“If there is a stoppage of Russian gas deliveries from Gazprom in the short term and no solidarity between European countries, the situation will become problematic”, underlines Mr. Allain.
Sign of these concerns, the price of European natural gas jumped more than 10% and the euro canceled all its gains of the day in the wake of this announcement.
Orbiting for Eutelsat and OneWeb?
The French satellite operator has confirmed that it has entered into discussions for a “possible rapprochement” with the British OneWeb and its constellation, an operation intended to create a giant in the race for the internet from space against the mastodon Starlink from American SpaceX.
The shareholders of the two groups should each hold half of the future entity in the long term. The action fell 17.83% to 8.57 euros.
© 2022 AFP
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