(BFM Bourse) – The CAC 40 is moving in balance late in the morning on Monday in a session with sluggish volumes, in the absence of many investors. The agreement reached between Republicans and Democrats to raise the debt ceiling has not yet passed the caudine forks of Congress.
The stock market in Paris begins the week in general sluggishness. In mid-session Monday, the Paris index is close to equilibrium at 7,317.45 points, in low volumes, with 355 million euros traded, shortly after 10 p.m.
The animation of the Parisian place suffers from the absence of many operators, since Wall Street, the London Stock Exchange or Oslo are closed this Monday in Pentecost. Not to mention that French investors may have taken a holiday on the same day Whit Monday is a public holiday, although many companies choose this day as a “solidarity day”.
Rififi in the US Congress?
At these low volumes, the agreement to raise the US debt ceiling, which was tied over the weekend, does not really support risk appetite. It should be noted that markets had largely expected that on Friday, allowing the CAC 40 to gain more than 1.2% at the close.
Moreover, this agreement still needs to get the green light from the US Congress, where each camp could express its dissatisfaction with the compromise reached. The vote will take place on Wednesday in the House of Representatives, then a priori on Friday or Saturday in the Senate, according to the leader of the Democrats, Charles Schumer, quoted by AFP.
“There is always a chance, however small, that the most intransigent Republicans will undermine McCarthy’s efforts,” said the Republican leader who brokered the deal with Democrats, Stephen Innes of SPI Asset Management.
As for the week’s other big events, the most important will take place on Friday with the publication of the US employment report for the month of May.
In terms of values, few movements to note at the moment in the Parisian market. Orpea fell 4.6% after announcing that the FSA had granted a dispensation to a group led by Caisse des Dépôts from the obligation to make a mandatory public offer (OPA). This group will take over control of the company following the financial restructuring planned by the group.
Elsewhere, the euro fell 0.1% against the dollar to $1.072. Oil, on the other hand, is sluggish. The July contract for Brent from the North Sea fell 0.2% to $76.86 a barrel, while the same-maturity contract for WTI listed in New York was steady at $72.66 a barrel.
Julien Marion – ©2023 BFM Bourse