The Paris Bourse yielded 0.14% Monday morning, after starting the session in the green, wait-and-see the start of a week loaded with corporate results and macroeconomic events.
At 9:35 am, the flagship CAC 40 index lost 9.60 points to 6,724.09 points. On Friday, it ended up 0.71% but had made little headway over the entire week.
The markets face many uncertainties: inflation remains high, production chains are severely disrupted by delivery difficulties and shortages, a reduction in central bank support is imminent and there is still a risk of bankruptcy hanging over the market. Chinese real estate giant Evergrande.
Added to this is a new concern about the pandemic in China, where authorities reported 26 new cases of Covid-19 on Sunday, three months before the Winter Olympics in Beijing.
“The number of cases remains extremely low, but, worryingly, they are very geographically dispersed,” said Jeffrey Halley, analyst at Oanda.
Authorities announced on Sunday the suspension of inter-provincial organized trips to five regions where cases have been detected, including Beijing. Some cities and parts of Inner Mongolia have also suspended bus and taxi services.
The menu for the week is loaded, with numerous results from companies, including Apple and Samsung, which will allow investors to gauge the impact of supply difficulties.
This Monday, those of the group of tires Michelin are expected after the closing of the Parisian place.
The European Central Bank (ECB) will hold its Governing Council meeting on Thursday, after which it is expected to maintain its expansive course, playing caution in the face of accelerating inflation and slowing global growth.
The American Central Bank (Fed) believes, for its part, that “the moment is near” to start reducing its asset purchases, but considers “premature” to raise key rates soon, its president Jerome Powell said on Friday. ahead of the next Fed Monetary Committee meeting on November 2-3.
“The markets will go into + pause + mode, awaiting the ECB later this week and especially the Fed next week, with the announcement of the imminent launch of + tapering + (slowdown in asset purchases) which will be very probably on the program, “said Tangi Le Liboux, strategist at Aurel BGC.
Eramet benefits from the increase in production
Eramet took 0.18% to 82.85 euros, after reporting a turnover up 34% in the third quarter compared to the same period a year earlier. The French mining group benefited from the increase in production, in particular of metals used for electrification and energy transition. It is nevertheless penalized by the explosion in sea freight costs.
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