2023-10-23 08:08:02
Paris (awp/afp) – The Paris Stock Exchange stagnates on Monday, cautious while waiting to see how the conflict in the Middle East evolves and what the European Central Bank (ECB) which meets on Thursday will decide.
The flagship CAC 40 index lost 2.97 points (-0.04%) to 6,812.11 points around 9:45 a.m. On Friday, the index lost 1.52%, falling to its lowest closing level since January 5.
Over the week, the Paris Stock Exchange dropped 2.67%, its worst weekly loss since the beginning of July.
Investors continue to monitor developments in the conflict in the Middle East, and particularly the risk of regional escalation.
“Tension remained high in the region, still with the increasing risks of conflagration and new outbreaks of violence” underlines Sebastian Paris Horvitz, research director of LBP AM.
The Israeli army has massed tens of thousands of soldiers on the outskirts of Gaza and on its northern border with Lebanon.
At this border, deadly exchanges of fire have increased between the army and Hezbollah, while residents evacuate the border area on both sides.
The Israeli army on Sunday accused Hezbollah of seeking military escalation at the risk of dragging Lebanon into war.
The market was also scrutinizing some positive news: a “continuous flow” of aid was promised to the Gaza Strip by the United States and Israel, and Hamas released two American hostages on Friday, which allowed oil prices to rise. decline, by around 1% for the two reference contracts.
In economic news, company results will continue to occupy investors’ minds this week, before the meeting of the European Central Bank (ECB).
The ECB is expected to leave its rates unchanged on Thursday during a remote meeting in Athens, a first following ten increases in a row, with inflation falling sharply in the euro zone leaving it with little other choice.
On the bond market, interest rates on 10-year US Treasury bonds are around 5%, driven by the prospect that the US central bank will maintain its high key rates for a long time.
“The rise in long-term rates is partly due to the resilience of the American economy and the fact that the Fed, even if it plays the cautious card, continues to emphasize the possible need for additional tightening of monetary policy” , explains Sebastian Paris Horvitz.
The yield on the 10-year French debt increased further around 9:45 a.m. and stood at 3.54% compared to 3.51% at Friday’s close.
Possible order for Dassault Aviation
Saudi Arabia has asked Dassault Aviation for a quote for the acquisition of 54 Rafale planes, while the kingdom has so far sourced its combat planes from the Americans and the British, says La Tribune Dimanche. The aircraft manufacturer’s shares rose 2.20% to 186.30 euros.
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