The Paris Bourse was prepared to open lower on Monday, after five consecutive weeks of rise, scrutinizing negotiations on measures to help the US economy and the final phase of post-Brexit discussions.
The futures contract on the CAC 40 index lost 0.38% forty minutes before the opening.
Friday, the Parisian place had progressed by 0.62% to 5,609.15 points, posting a fifth week of rise in a row. The New York Stock Exchange had for its part closed on new records.
“The European indices should open lower this morning in the absence of an agreement between Republicans and Democrats in the United States, of procrastination on the subject of Brexit and the sad observation that the United States has just experienced a new record number of coronavirus infections, “said John Plassard, investment specialist at Mirabaud.
Meanwhile, press reports that the United States are considering sanctioning Chinese officials over recent events in Hong Kong could weigh on the market, according to Michael Hewson, analyst for CMC Markets.
US parliamentarians were to floor this week on support measures for businesses and households.
After predicting a “gloomy” winter, President-elect Joe Biden called on Friday to provide aid to Americans “now” as many aid to the unemployed and families expire on December 26. And that job creation took a serious chill in November.
A plan to help the economy of 908 billion dollars was proposed last week by a group of Democratic and Republican senators.
Parliamentarians must also find an agreement on a financing law to avoid a “shutdown”, the shutdown of the federal government for lack of state funding, on December 11.
In Europe, volatility should also rise a notch with the meeting of the European Central Bank on Thursday, the high point of the week. Investors are counting on stepping up its intervention to support the economy, which is still suffering in the euro zone, where the budgetary stimulus plan of the 27 is overdue.
Economists expect the ECB’s Governing Council to decide to increase its private and public debt buyback program by at least € 500 billion and extend it beyond June 2021, until December at least.
The news in China, where exports increased in November by 21.1% over one year, supported a finding of recovery in the activity of the Asian giant, which should be one of the few large countries to announce growth in 2020. This increase, well above market expectations, is the strongest for more than two years.
VALUES TO FOLLOW
Societe Generale: the group will merge its networks of Societe Generale and Crédit du Nord banks, a project that will involve the closure of 600 branches.
Axa: the CEO of Axa France denounced a “scandalous blackmail”, after the Minister of Economy and Finance Bruno Le Maire called for freezing the insurance premiums of hoteliers and restaurateurs on pain of a new tax . A meeting on the issue is scheduled for Monday between Bercy and the insurers.
EDF: Greenpeace denounced on Sunday flaws in the security of the EPR nuclear reactor site in Flamanville (Manche), claiming to have been able to consult confidential and detailed documents on the protection of the site.
Eramet: the mining group is looking for a buyer for its Aubert & Duval subsidiary, specializing in high performance steels and alloys and targeted by a voluntary departure plan.
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