The Paris Bourse should try to continue its rebound from last week on the back of hopes raised by the prospect of talks between Russia and Ukraine. Oil prices are heading back down in this regard, even if the continuation of Russian military operations in the country leaves investors skeptical. The market is therefore preparing for another session of high volatility.
Ukrainian officials have confirmed that they will hold a videoconference with their Russian counterparts on Monday. Both delegations had previously reported progress in the discussions. While Russian missiles hit a Ukrainian army base about 20 kilometers from the Polish border, both sides are nevertheless optimistic about the possibility of a breakthrough. The effects of Western sanctions against Russia are also beginning to be felt and some fear a default by the country on its debt, while Moscow is due to pay bond coupons this week.
The city of Shenzhen totally confined
Meanwhile, White House National Security Advisor Jake Sullivan is set to meet Yang Jieichi, a senior Chinese diplomat in Rome today. This meeting comes at a time when, according to Washington, Moscow has requested assistance in military equipment from Beijing.
Chinese markets are down sharply this morning, weakened by technology stocks in the face of the risk of withdrawal of several companies from the American rating sector. The resurgence of coronavirus infections has also prompted the authorities to place the 17.5 million inhabitants of the city of Shenzhen in total confinement for at least a week. Supplier of Apple, Foxconn has also announced the total cessation of its production in its factories located in the region. This situation reinforces fears about the country’s growth and fuels expectations of new support measures from the Chinese central bank.
Bond markets also remain under pressure, with strong commodity prices adding to inflationary pressures two days before the US Federal Reserve’s interest rate decision. The market expects a rise of at least 25 basis points in the Fed funds rate on Wednesday.
EDF estimates the impact of its drop in production on its Ebitda at 16 billion
Others should follow and investors will be watching the Fed’s new economic projections, as well as the updating of its expectations concerning the evolution of interest rates, the famous “dot plot”. The yield on the 10-year US bond rose above 2% in Asia this morning, while that of the 5-year bond crossed this same threshold for the first time since May 2019.
EDF estimates the negative impact on its gross operating surplus (Ebitda) of the drop in production in 2022 compared to 2021 at around 16 billion euros. In February, this impact was estimated at around 11 billion euros.
Sanofi announced that the Phase 2 AMEERA-3 trial evaluating amcenestrant for the treatment of advanced or metastatic breast cancer failed to meet its primary endpoint of improvement in patient progression-free survival of the disease.
Orpea published preliminary financial indicators for its 2021 financial year, the publication of its annual results being planned “ by the end of April pending multiple reports of charges of neglect and abuse.