Cac 40 continues its dynamics, hoping for a more flexible approach by central banks, market news

After rising more than 3% last week, the Paris Stock Exchange resumed its pace on Monday morning, stabilizing oil prices have raised hopes that inflation is about to peak, which could encourage central banks to be less aggressive. Expectations are already fueled by fears of a recession.

At 9:30 p.m. Bedroom 40 increased by 0.80% to 6122.13 points with a business volume of 260 million euros.

The last week of the first half of the year will be caused by portfolio adjustments by major institutional investors who need to support the markets. Marko Kolanovic, JPMorgan’s chief market strategist, believes that these adjustments should lead to a significant increase in shares, especially since he considers the market oversold.

Contracts future US indexes gained a few more points this morning after a 6.5% rise in the S&P 500 last week, the best figure for the month. This morning, Asian markets grew, in part, due to technology stocks.

Stabilization of inflation expectations

Investors remain focused on macroeconomic indicators and signs of easing price pressures in the United States, 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 “, Noting that the Federal Reserve is fully defined to fight inflation.

San Francisco Fed President Mary Daly said on Friday that she was in favor of raising the Fed rate by 75 basis points, while her colleague from the St. Louis office, James Bullard, considered fears of a recession exaggerated.

The car offers a rebound

The European Central Bank kicks off its international forum on Monday in Sintra, Portugal, bringing together the world’s leading financiers. Christine Lagarde, Andrew Bailey, her colleague from the Bank of England and Jerome Powell will perform on Wednesday.

In addition, it should be noted that for the first time since 1918, Russia has overdue its foreign currency debt after the expiration of the term on Sunday related to the payment of compensation of $ 100 million. This default is a consequence of Western sanctions, which do not allow Moscow to make payments in euros or dollars.

The automotive sector is gaining momentum after four consecutive weeks of decline. Fauretia rose 6.7% as Jefferies raised its equipment manufacturer’s recommendation from “hold” to “buy”. Valeo further with an increase of 4.4% Michelin rose by 2.3% and Renault at 4.8%. Plastic omnium occupies 2.2%. The group has reached an agreement to acquire Actia Power, a vehicle electrification division of the French group Actia, at a cost of € 52.5 million.

Valneva increases by 4.7%. The pharmaceutical group said it had received marketing authorization from the European Commission in Europe for its inactivated Covid-19 vaccine. This permit applies to 27 EU countries, as well as Iceland, Liechtenstein and Norway.

And vice versa, Ipsen fell 2.3% after the announcement of the acquisition of the American biopharmaceutical company Epizyme, which specializes in oncology, for an initial amount estimated at 247 million dollars (234 million euros).