The Paris Stock Exchange down slightly after a lackluster session

The Paris Stock Exchange lost 0.18% on Monday, without energy, in a context that was not very favorable to risk-taking with the negotiations concerning the raising of the American debt ceiling.

The star CAC 40 index fell 13.80 points to 7,478.16 points. On Friday, it had taken 0.61%, to end the week up 1.04%, at 7,491.96 points.

President Joe Biden and Republican leader Kevin McCarthy will meet in person on Monday to continue negotiations on raising the debt ceiling of the United States, ten days before the deadline for the default.

“Whatever happens, they will find a solution,” said Nicolas Budin, head of equity management for Myria AM.

Republicans are demanding a cut in federal spending to give the green light. The Biden administration refuses, and proposes for its part to reduce certain expenses while increasing taxes for the richest and companies.

Looking at the longer-term markets, Nicolas Budin does not identify any publication or event that could give new impetus to stock market indices, “unless there is a big surprise from the Fed”.

Federal Reserve Chairman Jerome Powell remained unclear on Friday about the Fed’s intentions for its next meeting in June. Will the US central bank raise rates again? “We have not made any decisions as to the extent to which further policy strengthening would be appropriate,” Powell said.

The agenda for the week is sparse. PMI activity indicators for the euro zone and the United States are due on Tuesday. On Friday, investors will be watching for the US PCE inflation report.

Dassault Systèmes well seen

The action of the French software group Dassault Systems jumped 4.39% to 39.60 euros after the broker Kepler Chevreux raised its recommendation on the title.

Air-France-KLM under the wing of Ryanair

Airline stocks benefited from the well-received results of Irish airline Ryanair: Air-France-KLM gained 1.96% to 1.69 euros and Aéroports de Paris 1.82% to 145.70 euros.

Ryanair returned to profit in its staggered annual financial year completed at the end of March and traffic volumes exceeded pre-Covid levels.

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