The Paris Bourse, which fell to its lowest levels of the year in session Friday, hoping good news side of the business publications in the United States to offset the gloom in Europe.
In the past week, the CAC 40 index lost 4.86% to close Friday at 4,073.71 points, its lowest closing level of the year. The Paris market is now losing 5.17% since January 1.
The CAC 40 index crossed Friday its lowest of the year meeting, which now stands at point 4065.5.
“Do not worry because there will be technical rebounds,” however warns Franklin Pichard, director of Barclays Bourse.
A view shared by Christopher Dembik economist of Saxo Bank review. “Even if the selling pressure is undeniable,” the assumption of rebound is not ruled out, he says.
He said a wave of good quality results in the United States could have a spillover effect, allow the CAC 40 to raise. Tuesday, JPMorgan Chase and Citigroup will set the tone, followed the next day by Bank of America.
In contrast, little is to be expected from business publications on the Paris stock exchange, even if “there will be a season of results that will be more or less in line with the consensus,” suggests Mr. Dembik.
LVMH will be the first heavyweight odds to lead off Tuesday, but the festivities especially their full fight from the following week in Paris.
Microeconomics should not completely overshadow the communication of central banks, which are crucial for the markets.
For the ING bancassurance, “comments from the G20 finance ministers and central bankers in Washington” could have an influence on the markets next week.
– “Serious risk ‘of recession’ –
The Fed failed to sustainably reassure markets this week after the publication of the minutes of the last meeting , will release its Beige Book on Wednesday the American economy.
Mr. Dembik the “fuzzy” over the future of monetary policy weighed on markets.
They have also suffered this week an “accumulation of bad macroeconomic indicators that feeds the potential risk of a recession in the eurozone,” said Mr. Dembik.
The Director of the International Monetary Fund (IMF) has warned that “serious risk” of another recession lurking eurozone if nothing is done to remedy the sluggish growth in the region .
Since September, the negative signals are gathering around Germany, which accounts for one third of the GDP of the monetary union, showering hopes to see a boost in itself mired eurozone in the crisis.
“After the big disappointments in Germany this week, next week is not likely to bring a lot of relief,” also indicate ING economists, who believe that a drop in the ZEW barometer of confidence in financial circles is “likely”.
The euro area inflation in September is also on the agenda as well as industrial production for August, “both brought to disappoint,” said ING, which will reinforce expectations the Bank boss European Central (ECB).
The ECB is conducting a very accommodative policy to try to restart the machine, and called on policy makers to act, conducting structural reforms and adopting growth policies where possible, without compromising questioned the budget seriously.
However, the markets believe it did not go far enough in its last monetary policy meeting in early October, especially against the risk of deflation.
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