(BFM Bourse) – The CAC 40 is moving forward a little at mid-session this Wednesday, recovering from its hard day the day before. Capgemini delights the market by reassuring its growth trajectory.
Still a little stunned, the CAC 40 is trying to get back on its feet. The flagship index of the Paris Stock Exchange advanced 0.4% to 7,657.40 points at mid-session, regaining some ground after losing 0.8% on Tuesday.
“The US inflation figures are very bad. Total inflation is slowing less than expected and remains above 3%, because underlying inflation is stagnating close to 4%, twice above the target of the Fed (American Federal Reserve). In addition, inflation is accelerating sequentially and the increase in prices is coming from the least volatile categories (housing and non-housing services)”, explains Xavier Chapard of LBPM.
This figure had a notable consequence: greatly weakening the probability given by the market to future rate cuts by the Fed. According to the CME Group’s FedWatch tool, the market assigns an 8.5% probability to a rate cut at the March meeting and 37% to the one ending on May 1.
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Capgemini seduces the market
Investors also continue to dissect the latest company publications. Capgemini signs the hit of the day with an increase of 5.7%. The group published better than expected growth and above all indicated that it expected an improvement in its dynamics from the second quarter of 2024.
M6 advances by 2%. The market takes note of slightly better than expected advertising revenues in the fourth quarter without being moved by the announcement of the departure in April of Nicolas de Tavernost, its chairman of the board, who will be replaced by the head of commercial activities, David Larramendy.
“At the head of the company for 25 years, he was appreciated by the markets for his cost control, which allowed M6 to outperform its peers in particular in terms of ROCE (return on capital employed, Editor’s note)”, underlines the independent research firm AlphaValue. The financial intermediary salutes a “long-reigning” leader who has been “well perceived” by the market.
Cement specialist Vicat advances 4.8%, benefiting from a good publication of its 2023 results, certainly helped by a lenient basis of comparison.
On other markets, the euro is stable against the dollar, at 1.0704 dollars. Oil is growing. The April contract gained 0.3% to 83 dollars per barrel while that of the same maturity on WTI listed in New York gained 0.3% to 77.76 dollars per barrel.
Julien Marion – ©2024 BFM Bourse