Published on January 15, 2024 at 8:37 amUpdated on January 15, 2024 at 8:58 pm
Sessions are always quiet when American markets don’t open their doors. This Monday will be no exception, as the United States celebrates the birthday of Martin Luther King. But the Paris Stock Exchange, continuing its momentum from last Friday, intends to gain a few fractions, when the Cac 40 posted its best performance in a month (+1.05%). The American Federal Reserve since March.
A lower-than-expected increase in the producer price index in the United States was the driving force behind the market over the weekend, contributing to the S&P 500 briefly rising above 4,800 points for the first time in two years.
The world’s political and economic elite are heading to the ski resort of Davos in Switzerland for the annual meeting of the World Economic Forum this Monday to Friday. Between the war in Ukraine and tensions in the Middle East, geopolitics with its impact on trade should be at the center of the discussion. Inflation and economic growth, climate and technological change, along with the rise of artificial intelligence, will all be themes addressed by thousands of participants. The boss of OpenAI, the president of the ECB, the head of American diplomacy, the prime minister of China and the president of Argentina are also among the most famous guests.
New Taiwan president without majority in parliament
In Asia, China’s CSI 300 index was steady after the People’s Bank of China kept its one-year key rate at 2.5%, where most economists surveyed by Bloomberg expected a smaller cut. ” Given weak Chinese economic data, a rate cut will weaken the yuan said Robert Cornell, head of research at the IG. ” I think the authorities are very limited in what they can do. So I’m neither disappointed nor surprised, but resigned to the fact that this year will still be tough. »
2024, in addition to certainly easing central bank monetary policies, is a very political year. There are 76 national elections (presidential and legislative). Four billion people are affected, including residents of Taiwan. Lai Ching-te won the vote on Saturday, promising to keep the Democratic Progressive Party in power. Protect Taiwan from China’s constant threats and intimidation ” But his party lost an absolute majority in the lower house, a mixed victory that translated into a symbolic gain of 0.2% for the main index of the Taipei Stock Exchange. Alicia García Herrero, chief economist at Natixis, believes that the victory speech “ measure » by Lai and the impasse in which parliament finds itself are reasons why Beijing cannot react. ” If so, the market will be positive “
Atos management replacement
Besides Davos, the day will be animated by preliminary estimates of German GDP in 2023 as well as industrial production in the euro zone.
On the corporate front, HSBC Bank is active on recommendation changes today as its analysts downgrade Worldline from “buy” to “hold” and Atos from “hold” to “weak”. Debt-choked digital services group has named its chief financial officer Paul Saleh as chief executive with immediate effect following Yves Bernard’s decision to leave the company. And according to the daily Les Echos, plans to sell Atos, the outsourcing arm of tech foundations, to Czech billionaire Daniel Kratinsky have been seriously compromised.
HSBC previously rated Capgemini from “hold” to “buy”. Schneider Electric sees RBC’s recommendation downgraded from “sector performance” to “underperformance.”
