Cac 40 Irregular Sessions, Market News Between Soaring Oil Prices and Economic Concerns

Volatility is a keyword on the Paris Stock Exchange, and the Cac 40 has evolved within a 130-point margin between the highs and lows this morning. Soaring oil prices by more than 4% support the European heavyweight division, especially in the following sectors: TotalEnergies (+ 4.2%), shell (+ 5%) or BP (+ 4%), the market continues to question the economic implications of the war in Ukraine. A record 5.8% rise in consumer prices over the February year in the euro area confirms these concerns.

Russia says it is ready for the second round of negotiations on Wednesday, showing that it is unclear if the Ukrainian delegation intended to participate. President Zelensky said on Tuesday that stopping Russia’s bombing was a prerequisite for any debate. The first meeting on Monday was unsuccessful, and Russia has since intensified its attacks on major cities in Ukraine.

During the session Bedroom 40 With a trading volume of € 2.3 billion, it resumed 0.38% to reach 6,420.95 points. In frankfurt Daks Increases by 0.22%. For companies that focus on raw materials, Footsie London rose 0.60%.Agreement future The US index has risen by about 0.7%. The day before the S & P 500 entered the correction zone, it fell 10.6% compared to the record in early January.

OPEC + must maintain course

Brent’s barrel reached $ 113.02 this morning, hitting a seven-year high. This is despite the IEA’s (International Energy Agency) member countries deciding to withdraw 60 million barrels of strategic stocks to stop the surge. At the price. In this context, OPEC +, which ranks Russia, must determine its quota on Wednesday. Experts estimate that the expanded cartel should not deviate from plans to increase production by 400,000 barrels a day next month.

Bloomberg also reports some traders and shipowners’ resistance to Russian oil, which can affect the flow. The agency also shows that historically low prices oil offerings from the Urals could not find a buyer.

Yields on US Treasuries, a fragile sign of the beginning of interest in risky assets, were tightened by 2 basis points to 1.74%, while German American Bund yields with the same maturity were -0.06% last night. It fluctuated around -0.03%.

Jerome Powell in a delicate position facing Congress

The market will monitor the February ADP survey on job creation in the US private sector in the early afternoon. Then, at 4 pm, Jerome Powell will attend the House of Representatives Financial Services Commission as part of the first part of the biannual hearing in Parliament. He needs to signal that the Federal Reserve intends to initiate the process of normalizing its monetary policy, but it also needs to pay attention to the geopolitical environment. Western investors believe that central banks should work realistically and patiently to normalize monetary policy.

Pressure on companies doing business in Russia remains strong

A slight rise in interest rates gives banks some leeway. BNP Paribas Therefore, after being booked for a reduction in the opening, we resumed 0.2%.

On the other hand, the French state’s pressure on companies in Russia continues to weigh heavily. Alstom (-1%) and Danone (-3.3%). Renault It fell another 1.5%, down more than 18% in a week.

ArcelorMittal 4.2% increase during contract future Iron ore exceeded $ 150 per ton, an increase of about 10% over three days.

Schneider electric It will increase by 2.6%. HSBC has raised its stock recommendations from “hold” to “purchase”.

BioMérieux In-vitro diagnostics experts have released an account for 2021, which exceeds goals and analysts’ expectations, but warns that results will decline this year as demand associated with the coronavirus pandemic is expected to decline. did.

Albioma It will decrease by 8.5%. Energy producers have announced their cautious forecasts for 2022 after recording results at the top of last year’s forecast range, especially thanks to the strong performance of assets in Brazil and Turkey.