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Paris (AFP) – The Paris Bourse closed in the red on Monday, posting its fourth consecutive session of declines, as investors struggled to digest Friday’s US jobs report, the further escalation of the war in Ukraine and the tension on rates bondholders.
After a sharply lower opening and an abortive attempt to rebound, the Parisian rating ended down 0.45% at 5,840.55 points.
“Investors are digesting Friday’s US employment report”, with “the geopolitics in the background which still remains very negative and which in particular keeps oil prices relatively expensive”, commented Alexandre Baradez, market analyst for IG. France.
The market was hoping that signs of deterioration in economic conditions in the United States would encourage the American central bank to slow the increase in its key rate. But after strong data from the US job market at the end of last week, they realized that their wish would be wishful thinking.
At the same time, investors are projecting themselves on the data to watch this week, especially the consumer price index (CPI) in the United States on Thursday, with some beginning to believe “that it is possible to witness the start of a good surprise on headline inflation in the United States,” observes Mr. Baradez.
Many economic and monetary policy meetings are scheduled for the next few days.
The International Monetary Fund (IMF) economic outlook will be released on Tuesday and “could show a further reduction in growth expectations for 2022 and 2023, compared to the last release in July,” according to IG France.
At the end of the week, markets could be under pressure again, with the start of the corporate earnings season for the third quarter.
The UK will be particularly watched this week, especially employment data on Tuesday.
In France, growth in gross domestic product (GDP) in the 3rd quarter should come out at 0.25% and be slightly weaker than estimated (0.3%) in early September, according to the latest Banque de France business survey. .
The strike movement spreads at TotalEnergies
The action of the oil giant fell 2.09% to 51.50 euros. Despite repeated calls from the government to negotiate and end the blockades, the strike movement was extended until Tuesday, when nearly a third of the stations, all groups combined, are affected by fuel shortages. Prime Minister Elisabeth Borne will meet Monday at 9:00 p.m. in Matignon four ministers concerned by the difficulties of fuel supply.
Renault accelerates its negotiations with Nissan
According to a source familiar with the matter, interviewed by AFP on Monday, negotiations on a restructuring of the Renault-Nissan-Mitsubishi Alliance, the world’s third largest automotive group, “accelerate” even if a number of points remain to be settled.
Renault gained 2.41% to 31.42 euros, after climbing to more than 6%.
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