After gaining more than 3% last week, the Paris Stock Exchange continued its gains on Monday morning as the stabilization in oil prices raised hopes that inflation is about to peak, which could prompt central banks to be less aggressive. Expectations are already fueled by fear of a recession.
At 9:30 am Bedroom 40 added 0.80% to 6,122.13 points with a business volume of 260 million euros.
This last week of the first half of the year will be driven by portfolio adjustments by large institutional investors, which should support the markets. Marko Kolanovic, chief market strategist at JPMorgan, said these adjustments should lead to a significant increase in inventories, especially as the market is oversold.
Contracts future This morning, the US indices added a few more points after the S&P 500 rose 6.5% last week, its best result in a month. Asian markets rose this morning, in particular, due to the shares of technology companies.
Stabilization of inflation expectations
Investors remain focused on macroeconomic indicators and signs of easing in US price pressures as the inflation expectations component of the consumer confidence index has stabilized against all expectations. Last week, Jerome Powell told Congress that the recession in the US economy remains ” possibility “, taking care to indicate that the Federal Reserve ” completely resolute to fight inflation.
San Francisco Fed President Mary Daly said on Friday she favors a 75 basis point hike in the Fed’s funds rate, while her St. Louis office colleague James Bullard said recession fears are exaggerated.
Car offers rebound
The European Central Bank kicks off its international forum on Monday in Sintra, Portugal, which brings together the world’s biggest financiers. Christine Lagarde, Andrew Bailey, her Bank of England colleague, and Jerome Powell will speak on Wednesday.
Also, note that Russia defaulted on its foreign-currency debt for the first time since 1918, after the $100 million settlement deadline expired on Sunday. This default is a consequence of Western sanctions that prevent Moscow from making payments in euros or dollars.
The automotive sector is gaining momentum after four consecutive weeks of decline. fauresia rose 6.7% as Jefferies upgraded its equipment manufacturer’s recommendation from Hold to Buy. Valeo follows with an increase of 4.4%, Michelin went up by 2.3% and Renault by 4.8%. plastic omnium occupies 2.2%. The Group has reached an agreement to acquire Actia Power, the vehicle electrification division of the French Actia Group, based on an enterprise value of EUR 52.5 million.
Valneva rises by 4.7%. The pharmaceutical group said it has received permission from the European Commission to market its inactivated Covid-19 vaccine in Europe. This permit applies to the 27 EU countries as well as Iceland, Liechtenstein and Norway.
Vice versa, Ipsen fell 2.3% after announcing the acquisition of US oncology biopharmaceutical company Epizyme for an initial $247 million (€234 million).