(BFM Bourse) – The Paris Stock Exchange is holding its lead, slowed in its momentum by the European Commission which lowered its growth prospects for the euro zone. The CAC 40 is up 0.5% this Monday at mid-session.
The Paris Stock Exchange is entering this new week in the green, with the CAC 40 increasing by another 0.5% to 7279.83 points. The Parisian market saw its initial advance (+1%) reduced mid-session, hampered by the update of the European Commission’s economic outlook for the euro zone.
The European institution based in Brussels is more pessimistic about its economic growth forecasts for the euro zone in 2023 and 2024. It expects 0.8% and 1.3% respectively (compared to 1.1% and 1.6% respectively). previously) of growth for the current year and the next, on the basis of Germany entering recession in 2023.
The inflation outlook is also revised downwards for 2023, Brussels estimates that consumer prices should increase on average by 5.6% in 2023, compared to 5.8% announced in May when they should reach 2.9 % in 2024.
The agenda is busy this week, with many major meetings, particularly on the price front, in Europe and the United States on Wednesday and Thursday. “While the underlying consumer price index (CPI) is expected to fall and to the lowest since October 2021, headline inflation is expected to rebound for the second consecutive month to 3.6%. The policy decision The Fed’s monetary policy is expected next week,” recalls Vincent Boy, Market Analyst at IG France.
The European Central Bank will also be at the heart of market attention since it will reveal its decision on its rates on Thursday. According to a Reuters survey, a majority of economists expect a status quo on rates, which would put an end to a series of ten consecutive increases.
JCDecaux at the top of the bill
On the value front, JCDecaux is up 7.8% and occupies the head of the SBF 120, supported by Oddo BHF which on Monday raised their advice on value to “outperformance” (purchase equivalent) from “neutral”. previously. The price target is adjusted to 22 euros from 21 euros.
Bic appreciates by 2.5%, the manufacturer of stationery, lighters and razors Bic says it is “on track” to achieve the objectives of its Horizon 2020-2025 strategic plan.
On the other hand, Legrand is having a difficult start to the week (-2.6%) weighed down by Citigroup which has sold the stock, with a price target of 82 euros. American bank analysts estimate that the electrical equipment markets will deteriorate in 2024.
On the small cap side, Biophytis limits its gains to 2% after having soared by more than 30% in the first exchanges. The biopharmaceutical company received the green light from the FDA to launch its Phase III SARA-31 study for its potential treatment for sarcopenia.
On other markets, the euro gained 0.3% to 1.7031 dollars. Oil is taking a breather after its recent rise. The November North Sea Brent contract lost 0.2% to $90.44 per barrel, while the October contract lost 0.5% to $87.05 per barrel.
Sabrina Sadgui – ©2023 BFM Bourse