The Paris Stock Exchange is up slightly, but the movement is contained by tensions in the interest rate markets. Investors are trying to assess the implications of a stronger-than-expected US jobs report on the Fed’s interest rate strategy. Especially since the increase in hourly wages reached 5.7% over one year in January, against 4.7% in December. Expectations of monetary tightening have also taken hold in the eurozone, where inflation hit a record high in January.
The ECB is no longer ruling out monetary tightening this year. Klaas Knot, a member of the board of governors of the central bank, has also indicated that he expects a rate hike in October. ” We are not in the same situation as the United States, where inflation has internal causes he said on Dutch public television on Sunday, adding that in Europe, most of the inflation comes from abroad, and we can’t do much about it “. Christine Lagarde will not fail to be questioned on this point by the Economic and Monetary Affairs Committee of the European Parliament. His intervention is scheduled from 4:45 p.m.
Around 2:30 p.m., the Bedroom 40 takes 0.38% to 6,977.65 points in a business volume of 1.26 billion euros. The contracts future March on US indices gain between 0.2% and 0.4%. The S&P 500 managed to gain 1.55% last week, its best weekly performance since the start of the year. Platoon jumped 32% in the New York forecourt as Amazon and Nike reportedly consider bids on the exercise bike maker, which would explore various options including putting it up for sale.
US inflation in sight
” A record amount of support is about to be pulled from the global economy “Said Andrew Sheets, strategist at Morgan Stanley. He added that US bank economists expect major central banks to reduce the size of their balance sheets by some $2 trillion in one year from May.
In this context, the market will monitor Thursday the evolution of consumer prices in January in the United States. They are expected to have risen 7.3% year on year, after 7% in December, which was already a high of almost 40 years. The question of a 50 basis point hike in the federal funds rate in March is once again on the table. According to the CME Group’s FedWatch tool, based on the evolution of the futures markets, this probability is estimated at 69.2%, while that of a tightening of 50 to 75 points is estimated at 30.8%.
On the geopolitical front, Emmanuel Macron is going to Moscow on Monday to meet his counterpart Vladimir Putin in an attempt to ease the pressure. He previously spoke with Joe Biden about how to respond to the buildup of Russian troops on the Ukrainian border. Jake Sullivan, the White House National Security Adviser, told Fox News Sunday that Russia could intervene in Ukraine in the coming days, weeks, or choose the diplomatic route.
Faurecia targets 33 billion sales in 2025
Faurecia wins 2.5%. Forvia, resulting from the merger between the French and the German Hella, has raised its cost savings forecasts by 2025. It is targeting sales of more than 33 billion euros in 2025, as well as a operating margin above 8.5%.
ArcelorMittal gain 3.2%. Morgan Stanley reiterated its buy recommendation on the steelmaker’s title. The latter would also have joined the ranks of candidates for the takeover of the renewable energy platform Sprng Energy in order to decarbonize its production. It will also invest 1.7 billion euros in its factories in Dunkirk and Fos-sur-Mer to “green” its production, in particular by replacing coal-fired blast furnaces with electric furnaces.
Conversely, Korian gives up 5.2% and Orpea loses another 6.6%. Equita downgraded the first from “purchase” to “keep”, while the second remains weakened by accusations of abuse in its Ephads in France.