Cac 40: Activity is picking up in the euro zone but the Paris Stock Exchange is running out of steam

(BFM Bourse) – At mid-session the CAC 40 lost ground, the market yielding to caution before several important meetings.

The CAC 40 is struggling to find relays to follow up. After gaining 0.5% on Monday, the flagship index of the Paris Stock Exchange lost ground and fell 0.16% at mid-session to 7,021.03 points.

Caution is in order as several large-scale indicators (US GDP, PCE index in the United States) will be published in the coming days and the pace of company publications will accelerate in the second part of the week. Note however that Microsoft, which has just announced a new investment of several billion dollars in OpenAi, the creator of ChatGPT, will publish its quarterly results after the close of Wall Street.

PMI at most seven months in the euro zone

In Europe, attention is currently focused on the first estimate of the PMI indices, which measure private service activity. The composite index stood at 50.2 for the euro zone in January, which marks both a return above the 50 threshold, the boundary between an expansion and a contraction in activity, and a plus seven months high.

“The odds of the euro zone escaping a recession appear to be growing, with the latest flash PMI data highlighting a stabilization in the region’s economy in January,” said Chris Williamson, chief economist at S&P Global Market Intelligence. .

“Overall, these surveys are likely to encourage the European Central Bank to continue significant rate hikes over the coming months,” said Andrew Kenningham of Capital Economics.

Stock movements are contained. On the CAC 40, the difference is small between Engie, the biggest riser with a gain of 2.2%, and EssilorLuxottica, the biggest drop with a decline of 2.1%.

Outside the flagship index, Dassault Aviation dropped 3.3%, suffering from a degradation of Exane BNP Paribas to “neutral” against “outperformance” previously.

Interparfums drops 1.6%. The group has unveiled record annual revenues for 2022 but has been cautious for the financial year which has just begun.

Carmat lost 4.2% after unveiling its first financial objectives and announcing that it was aiming for the break-even point in 2027.

On other markets, the euro fell 0.15% against the dollar to 1.0856 dollars. Oil prices are changing little. The contract on Brent from the North Sea for delivery in March fell 0.1% to 88.09 dollars a barrel while that on WTI listed in New York for the same expiry advanced by 0.01% to 81.63 dollars a barrel.

Julien Marion – ©2023 BFM Bourse

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