Tuesday, January 18

The Paris Bourse resumes its downward trend

The control room of Euronext, the company that manages the Paris Stock Exchange ERIC PIERMONT

The Paris Bourse started to fall again on Monday morning, in the absence of major indicators, investors still trying to assess the risks posed by the Omicron variant for global growth.

After a slight fleeting rebound at the opening, the Parisian quotation resumed its downward trend of the last two sessions of last week.

At 9:35 am, the CAC 40 index lost 0.71% or 51.15 points to 7,168.33 points.

Since mid-December, the Omicron variant has been spreading rapidly around the world and comes with restrictions that compromise growth.

The International Monetary Fund warned on Monday that emerging economies should prepare for “episodes of economic turmoil” as the US central bank hikes key rates and global growth slows due to the Omicron variant of Covid-19.

“Investors already seem well prepared for an era of monetary tightening,” according to Saxo Bank.

They expect a hike in key rates from the US Federal Reserve in March and a reduction in its balance sheet in a process of normalization of its monetary policy while inflation continues to rise.

Inflation data that will be released on Wednesday in the United States and China will dominate this week’s economic calendar which will also include interventions by some Fed officials, including his boss Jerome Powell.

“Until then, investors will monitor the development of US rates and keep an eye on the negotiations between the United States and Russia on Ukraine,” said experts Aurel BGC.

Market operators will also be attentive to US producer prices which should show “once again that the rise in producer prices is greater than the rise in consumer prices and that either producers will adjust their prices, resulting in on a rise in inflation, that is to say, suffer rising costs and accept a drop in profitability, “predicts Vincent Boy, market analyst at IG France.

And to note that “these two scenarios are likely to displease investors and the markets”.

Objectives not met for Atos

The Atos share tumbled 15.63% to 36.95 euros, the IT group being sanctioned for presenting preliminary financial figures for 2021 below its objectives.

Sodexo acquires Frontline Food Services

The stock rose 0.32% to 80.30 euros after the catering group announced that it had signed an agreement to acquire Frontline Food Services, an American company specializing in take-out snacking products and distribution. automatic, for an undisclosed amount.

  1. Euronext CAC40


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