The Paris Stock Market is expected to open on a low note as investors approach the early sessions of 2024 with caution following a prosperous year in 2023. The futures contract of the CAC 40 index is down by 0.30% forty minutes before the start of the session, after closing 0.16% lower at 7,530.86 points on Tuesday. This shift in attitude comes as investors are wary of the expected interest rate cuts by central banks and the potential impact on commodities, particularly oil, due to tensions in the Red Sea.

Additionally, the bond market has seen a significant rise in interest rates after hitting a one-year low at the end of 2023. French state interest rates jumped from 2.40% to 2.60% in a week. This trading session also marks the beginning of employment statistics in the United States with data on job vacancies. The movement of this number, which reflects labor market tensions that can affect inflation, has been closely monitored by investors in recent releases. The week will culminate with the release of the December US employment report, eagerly awaited by the Federal Reserve to shape its monetary policy.

Investors will also have the opportunity to review the minutes of the latest Fed meeting after the Paris market closes on Wednesday. On December 13, the market responded positively to a more accommodative and optimistic tone than expected. The institution commended the significant slowdown in inflation and maintained its rates between 5.25 and 5.50%. There will also be data on inflation in the eurozone from Thursday onwards.

In terms of specific companies, Atos and Airbus are in negotiations for the sale of Atos’ big data and cybersecurity activities to Airbus, as per a statement released by Atos. The indicative offer, with an enterprise value of 1.5 to 1.8 billion euros, encompasses the entire scope, even though discussions are still in a preliminary stage. Atos also believes that it will need to sell “well beyond the 400 million euros” of assets, as communicated in July 2023, to “meet its financing obligations.” Additionally, four Atos board members have resigned.

This cautious atmosphere in the stock market is driven by a range of factors, from potential interest rate cuts to geopolitical tensions impacting commodities. Investors are closely monitoring employment data and central bank policies as they navigate the uncertainties in the market. As the week progresses, more information will be revealed, providing clarity on the direction of the stock market in the near future.