(BFM Bourse) – The Paris Stock Exchange continues its rebound, after further confirmation of the slowdown in inflation in the United States. The CAC 40 closed up 0.3%, back to 7,200 points this Wednesday. Alstom had a difficult session, with the market not appreciating the prospect of a capital increase.
Prices are once again showing signs of calm. And it is on the side of wholesale prices in the United States that this slowdown is visible. Enough once again to fuel the progression of the CAC 40, which closed up 0.33%, comfortably sitting on 7,200 points at 7,209.61 points.
The Parisian index is currently showing gains of 2.3% since the start of the week, driven by these signs of appeasement of prices in the United States.
On Wednesday, investors took note of producer prices, which fell by 0.5% over one month in October, which constitutes a pleasant surprise for the markets which were counting on a slight increase (+0.1%) in ‘one month to the next. And this is the biggest decline in producer prices since April 2020. On an annual basis, the statistic also delights the markets, with a price increase of 1.3%, much less than the consensus (+1.9% ).
On Tuesday, the flagship Parisian index rebounded by 1.4%, welcoming the confirmation of a marked slowdown (and greater than expectations) in prices, this time on the consumer side, last month.
The statistics published over the last two days make the prospect of a rate hike by the American Federal Reserve even more remote. Also note the 0.1% decline in retail sales in October in the United States. American consumer demand is showing signs of weakening, which lends credibility to the thesis of a soft landing for the American economy.
The market also appreciates the progress in the United States to avoid “a shutdown”, after the vote Tuesday evening in the House of Representatives for a budget extension for the federal state. The ball is now in the Senate’s court to avoid paralysis of the American administration.
Renault with its foot on the accelerator, Alstom is derailed
Renault increased by 2.3%, after its investor day which was full of announcements. The Diamond brand still intends to list Ampere, its subsidiary dedicated to electricity, on the stock market in spring 2024 but not at any price. And the group announced the launch of a new electric car for less than 20,000 euros.
On the other hand, nothing is going well for Alstom which plunged by 15% after having mentioned the possibility of appealing to the market to restore its financial situation.
On the foreign exchange market, the euro took a break (-0.2%) at 1.0853 dollars after having appreciated on Tuesday by 1.65% in reaction to the American inflation figures. As for oil prices, they continue to decline and show reductions of more than 1%. A barrel of Brent from the North Sea, for delivery in January, is now down 1.4% to $81.32. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, returned 1.8% to $76.84.
Sabrina Sadgui – ©2023 BFM Bourse