The flagship CAC 40 index fell slightly by 0.09% or 6.63 points, to 7,263.57 points around 10:15. At the last close, Friday, the index had finished up 1.87%, marking however a decline over the week of 0.66%.

Investors are keeping their eyes "riveted on the state of the economic situation, and its response, in the major countries, to monetary tightening," said Sebastian Paris Horvitz, research director at La Banque Postale AM.

On Friday, the markets were surprised by the announcement of nearly 340,000 jobs created in May in the United States, "against less than 200,000 expected," continues Sebastian Paris Horvitz.

At the same time, however, wage growth slowed and the unemployment rate rose (3.7% in May against 3.4% the previous month).

This economic data is mixed and in the run-up to the Fed's next meeting, scheduled for June 13-14, investors are trying to estimate the likelihood of a next rate hike by the powerful US institution.

According to Deutsche Bank analysts, markets estimate that there is "about a one in three chance of a rate hike next week, but perhaps the upcoming publication of inflation (CPI index, due on June 13, editor's note) could be the main element likely to tilt these probabilities in favor of a hike" if inflation does not show signs of slowing down.

In addition, "doubts about the strength of the Chinese recovery persist," adds the analyst of La Banque Postale AM. "We expect more stimulus measures from the government to support activity, but the consensus is still for a moderate impetus," he said.

In France, French private sector activity increased slightly in May, still driven by the dynamism of the services sector which compensates for the sluggishness of the industry, confirmed the firm S&P Global.

Luxury in decline

Luxury stocks, sensitive to China's economic situation, were down. LVMH lost 0.97% to 822.70 euros, Hermès 0.99% to 1937.20 euros and Kering 0.69% to 503.20 euros.

Oil companies on the rise

This weekend, following an OPEC+ meeting in Vienna, Saudi Arabia pledged to cut oil production by one million barrels per day starting in July. "This would bring the country's production level down to about 9 million barrels per day next month, the lowest level in years," said John Plassard, investment specialist at Mirabaud.

After these announcements, oil rebounded, as did sector stocks. TotalEnergies gained 1.21% to 55.85 euros, Technip Energies 2.85% to 19.51 euros and Vallourec 2.30% to 10.66 euros around 10:10.

© 2023 AFP