The Paris stock market is down nearly 0.3% this morning, around 7,200 points, a few hours ahead of a crucial meeting of the European Central Bank (ECB).

Whether to raise rates by 25bp or maintain the status quo, the suspense remains. The Frankfurt-based institution will issue its statement at 2:15 p.m., before the traditional conference to be held by its President Christine Lagarde a few minutes later.

The European markets remain in doubt after the release of several indicators showing persistent inflation on the Old Continent, which have investors fearing that the ECB will continue to be unaccommodating.

In view of recent statistics showing a marked slowdown in growth in Europe, however, financial markets have recently been boosted by expectations of a 'pause' in the rate hike cycle.

As a result, market participants could react very negatively if the ECB's measures prove disappointing.

A further hike, which could be likened to one too many, would be a clear signal of the ECB's determination, but would probably not be well received by investors", warns Emmanuel Auboyneau, associate manager at Amplegest.

Faced with these conflicting signals, Christine Lagarde is likely to have a difficult task ahead of her, as she tries to keep all options open for the future, while emphasizing the progress already made.

Investors will also be on the lookout for US producer price figures, which should show that the recent rise in oil prices is having an unfavorable impact on production costs.

Also on the other side of the Atlantic, the day will be marked by retail sales, which will reveal whether American consumers have continued to spend as the back-to-school season approaches.

In French company news, Assystem reports net income of 21 million euros for the first half of 2023, compared with 32.7 million a year earlier, and operating income from ordinary activities down 4.3% to 15.7 million, representing a margin down 1.2 points to 5.6%.

Esker reported net income down 26% to 7.5 million euros for the first six months of 2023, with operating profitability of 11.2% on sales of almost 87.9 million, up 15% (+16% at constant exchange rates).

Lastly, TotalEnergies has announced the launch of a tender for the supply of 500,000 tonnes per year of green hydrogen, so as to avoid the emission of around five million tonnes of CO2 per year in its European refineries by 2030.

TotalEnergies also announced that it had signed an agreement with Air Liquide for the long-term supply of green, low-carbon hydrogen to its Gonfreville platform, to reduce the site's annual CO2 emissions by up to 150,000 tonnes a year.

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