The Paris Bourse oscillates around the balance, divided between the firmness of oil stocks as basic materials and fears of inflationary pressure linked to the rise in commodity prices. Caution is reinforced by the imminent opening of the third quarter results season in the United States, as well as by the expectation of the publication, this week, of inflation figures across the Atlantic, in China and in Germany. and in France.
Reflecting these uncertainties, the yield of the German 10-year Bund, which serves as a benchmark in Europe, is stretched by around 2 basis points to -0.13%, a level not seen since May. On Friday, that of the US bond of the same maturity closed at 1.6118%, an increase of 15 basis points on the week, the strongest since March. The US bond markets are closed on Monday for Columbus Day, a public holiday in the United States, while Wall Street will be open.
Around noon, the Cac 40 was stable at 6,558.62 points (-0.02%) in a business volume of 760 million euros. The contracts futures December on American indices lost between 0.2% and 0.4%.
Oil prices to new highs
TotalEnergies up 1.8%, driven by the rise in the barrel of North Sea Brent to a new three-year peak at over $ 84, while that of WTI-grade US light crude broke through the $ 80 mark for the first time since November 2014. ArcelorMittal gained 4.1%, boosted by the 10% surge in iron ore futures contracts in Singapore. The mining group Eramet advance for its part of 4.2%. In China, coal futures reached an all-time high following the closure of around 60 mines due to torrential rains and flooding. In Amsterdam, natural gas futures contracts are experiencing erratic variations, now yielding 1.2% to 86.53 euros after having touched 94.905 (+ 8.3%). They had hit a record 162.125 last Wednesday.
Focus on the Fed and US banks
Investors, who remain under the blow of the announcement of the creation of only 194,000 jobs in the United States in September and a surge of wages of 4.6% over one year, await the publication, Wednesday, of the report of the last meeting of the Federal Reserve’s monetary policy committee, which could shed light on the timing of the “tapering”.
The third quarter earnings season that begins this week could bear the scars of rising commodity prices and strain on supply chains. JPMorgan Chase will unveil its accounts on Wednesday, ahead of Bank of America, Morgan Stanley and Citigroup on Thursday, then Goldman Sachs on Friday. Analysts said bank profits in the S&P 500 Index are expected to have grown about 20% year-on-year in the third quarter, while falling 20% sequentially. Overall, corporate earnings from S&P 500 companies are expected to rise 27.6% year-on-year, according to FactSet.
In France, it is LVMH which will inaugurate the publication season within the Cac 40 on Tuesday, before Publicis on Thursday.
Carrefour rejects merger offer
crossroads was down 1.8%. The distribution group rejected a public exchange offer (OPE) valuing it 16.5 billion euros proposed by its competitor Auchan, according to the press. The management of Carrefour and its main shareholders consider insufficient the valuation of its shares, between 20 and 21.25 euros, resulting from the Auchan offer, Bloomberg reports, citing sources familiar with the matter.
Danone loses 0.8%. HSBC has downgraded the title of the food giant from “purchase” to “keep” and reduced its price target from 71 to 67 euros.
Renault increased by 2.6%. The automaker has signed a memorandum of understanding with the Finnish mining group Terrafame for the supply of nickel sulphate for the production of batteries for electric vehicles.
CGG jumped 17.1%. The oil services group announced a 35% year-over-year increase in third-quarter revenue, confirming the ongoing recovery in the geosciences sector. Revenues are expected to rise to $ 270 million (233 million euros) over the period, up 72% from the previous quarter, the group said in a statement on its interim results.