(BFM Bourse) – The Paris Stock Exchange extends its rebound, preferring to focus on the slowdown in consumer prices in the United States rather than on the downward revision of growth prospects for the euro zone for 2023.
The Paris Stock Exchange remains well oriented, still delighted by the confirmation of a marked slowdown (and greater than expectations) in American inflation. The CAC 40 therefore continues its progression over 7,200 points this Wednesday at mid-session to 7,227.96 points. The flagship Parisian index thus adds 0.6% to its rise of 1.4% on Tuesday evening.
The markets did not fail to welcome the confirmation of the slowdown in the rise in consumer prices in the United States last month. Compared to October 2022, inflation now stands at +3.2% compared to +3.7% the previous month, below the target at +3.3%, according to the latest data published by the Department of Labor. Better yet, so-called “core” inflation, that is to say excluding the price of food and energy, stood at 4.0% over one year, the lowest for more than two years. years. Today’s statistic further distances the prospect of a rate hike from the American Federal Reserve.
Investors will again learn this Wednesday of a statistic relating to inflation in the United States. Producer prices for October will be published at 2:30 p.m. as will retail sales, again for the month of October.
In Europe, similar signals of easing prices are also visible. In France, for example, inflation fell significantly in October, to 4% over one year compared to 4.9% in September.
But this battle against inflation comes at a price. And it is Brussels that paints a somewhat bleaker picture for the European economy. The European Commission has once again lowered its growth forecasts for 2023 and 2024, with GDP growth revised to 0.6% and 1.2% in 2024.
The market also welcomes 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.
Luxury in good shape, Alstom is derailed
Good statistics published in China constitute the other good news on the markets. Retail sales and industrial production figures for October have indeed increased over a month as well as over a year. Which also benefits luxury values in Paris.
LVMH appreciates by 2.4%, Kering by 1.7% and Hermès increases by 1.2%.
On the other hand, nothing is going well for Alstom which is sinking by more than 20% 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 (-0.15%) at 1.0863 dollars after having appreciated by 1.65% in reaction to the American inflation figures. As for oil prices, they are consolidating after their rebound the day before, following a more optimistic monthly report from OPEC on demand for black gold. A barrel of Brent from the North Sea, for delivery in January, lost 0.7% to 81.93 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, returned 0.8% to $77.60.
Sabrina Sadgui – ©2023 BFM Bourse