Markets news, speculation on healthcare policy in China continues ahead of major fixtures this week

The Paris Stock Exchange hangs in the balance as investors continue to speculate about a change in China’s zero-Covid policy, despite denials by authorities. Market volatility is also driven by anticipation of interim results and inflation figures in the US this week. These could have implications for the Fed’s monetary policy, especially since last Friday’s employment figures confirmed that the labor market remains under pressure.

in session, Bedroom 40 It took 0.19% – 6,428.49 points with a business volume of 850 million euros. Contracts will come U.S. indexes gained about 0.5% on Friday, after rising about 1.3% on Wall Street.

Chinese markets rose on Monday despite the reaffirmation of a “zero Covid” policy. unbreakable “, in the words of health authorities. However, stakeholders believe that Beijing will have to slow down in the face of a slowing economy. Over-restricted cities such as Zhengzhou have called for more targeted measures. Most of the iPhones sold in the world are also manufactured in this region. Apple estimates it will produce 3 million fewer iPhone 14s than planned this year due to weaker-than-expected demand.

Chinese foreign trade is red

Rapid and large-scale reopening of the economy [chinoise] it seems very difficultBut authorities may be more willing to support growth in 2023, which could be a game-changer for markets notes Emmanuel Cau, European equity strategist at Barclays. China’s foreign trade figures also reinforce the sense that the authorities will have to act. In October, dollar-denominated exports fell 0.3% year-on-year, while imports fell 0.7%, marking the first simultaneous contraction since May 2020.

In the United States, attention is focused on the results of the midterm elections scheduled for Tuesday. All the seats in the House of Representatives, one-third of the seats in the Senate are renewed, the election of governors in 36 states, as well as important electoral functions at the local level. Democrats currently control the House of Representatives and hold a slim majority in the Senate. The lower house especially has control over the budget, which is a key issue for the continuation of Joe Biden’s presidency.

Morgan Stanley strategist Michael Wilson believes investors should be bullish on stocks entering the interim period. Polls pointing to Republican majorities in at least one of the two houses of Congress are a potential catalyst for falling bond yields and rising stocks, enough to sustain a bear market rally, he said. It’s the same story with Capital.com analyst Daniela Hathorn, a divided government and Congress for her ” are generally favorable to equity markets because they limit the likelihood of certain policy changes “.

Towards a slowdown in US inflation?

Consumer price statistics expected on Thursday may mark the beginning of a lull, but not enough to influence Fed policy. Consensus expects inflation to slow to 8% over the year from 8.2% in September. A number of officials, including Boston Fed President Susan Collins, Thomas Barkin of Richmond, Chris Evans of Chicago and Neel Kashkari of Minneapolis, have expressed their support for a smaller rate hike after four consecutive 75 basis point increases in December. The Fed funds rate ranges from 3.75% to 4%. Analysts believe that the final rate may exceed 5% next year.

Renault rose 3.7% on the eve of investor day. Bloomberg reports, citing people familiar with the matter, that the automaker plans to value its electric business at about 10 billion euros.

Air France-KLM 2% rise. Irish low-cost airline Ryanair has announced record revenue for the summer period and ” very solid recovery “.

Orpea It decreased by 3.2%. According to sources cited by the same press agency, the Ehpads manager is looking for capital of around 2 billion euros as part of debt restructuring.

Worldline It earns 1.7%. Electronic payments specialist has announced that it has signed a firm agreement to acquire the merchant acquiring business of Italian bank Banco Desio for €100 million.

Thales JPMorgan lost 0.8% as the defense electronics specialist downgraded its name to neutral from overweight.

TF1 It has increased by 1.8%. Canal and Canal+ (Vivendi group) have announced that they have signed a new distribution agreement.


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