Societe Generale under pressure after disappointing strategic plan
|While stock indices appear to be generally under pressure at the beginning of today’s session, Societe Generale's stock price dropped by 6% at the start of the week, its biggest decline in six months. This was due to the company's disappointing strategic plan, which lacked concrete decisions on the restructuring of the bank's ailing investment banking unit which has been a source of trouble and did not include plans to expand the share buyback program. Several divisions have been struggling for years, and the bank has not yet announced a clear plan for how to fix it. Investors were also surprised by the cuts to revenue and profitability brought by Chief Executive Slawomir Krupa's first strategy update and ultimately have given into some selling pressure. Despite the general negative moods in markets, we could be seeing some investors looking for alternative options even if other stocks start to rebound until there are some more positive fundamental signs from the Societe Generale.
Brent Oil holds over $94 at highest level in almost a year
Oil prices are attempting to extend the upward move towards $95 a barrel at the start of the week, continuing a recent rally driven by strong demand and supply cuts from OPEC+ leaders Saudi Arabia and Russia. Brent crude pulled back slightly but is attempting to rebound following a three-week rally that lifted prices by over 11% as there are some indications that the oil market could be undersupplied. Strong demand continues to support prices which despite the looming threat of a recession in many major economies, does not seem to have impacted the recent rally. Supply cuts from OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, has agreed to cut production in order to support prices. The outlook for oil prices in the coming months is uncertain but investors will certainly be keeping an eye on central bank decisions this week as they could set the tone for the near future as they evaluate what the market conditions may be looking like. In either case, it is important to remember that the oil market tends to be cyclical, meaning that prices tend to go up and down over time and as we are currently at the highest level in almost a year, it will be interesting to see if the upward move will continue or if demand sided pressure begins to emerge.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.