(BFM Bourse) – The Paris Stock Exchange manages to close in the green and preserve 7,000 points, yet threatened by fears linked to monetary policy after figures on American consumption above expectations.
The Paris Stock Exchange managed to close in the green at the very end of the session, with the CAC 40 up modestly by 0.11% to 7,029.70 points.
However, the Parisian market was somewhat panicked, even returning below 7,000 points, after the publication in the afternoon of retail sales above expectations in the United States last month.
In September, they therefore increased by 0.7% over one month, more than the 0.3% increase anticipated by the consensus.
This indicator therefore illustrates the resistance of consumption in the United States, the main engine of the world’s largest economy. And paradoxically this good news on the economic front is bad news for the markets. These figures indeed give additional arguments to the American Federal Reserve for further upward action on its key rates. On the bond market, the reaction was immediate since the 10-year rate of American debt rose again to 16-year highs at 4.84% compared to 4.7% the day before.
Still in the United States, the Nasdaq is also on a downward trend, penalized by press reports mentioning new American restrictions on the export of advanced chips to China.
The market also avoids reckless risk-taking, monitoring developments in the war between Israel and Hamas.
“It appears we are in a very dangerous and delicate holding pattern at the moment, but in the absence of any major developments since the Israeli evacuation notice to Gaza residents on Friday, the markets have withdrawn their covers weekend over the last 24 hours or so,” say Deutsche Bank strategists.
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Edenred and Sodexo, a ticket to the market
On the value side, Edenred ended up 4.1% and Sodexo up 1.6% while the threat of a capping of meal voucher commissions recedes following a report from the Food Authority. competition. At least in the short term.
Airbus advanced 3.6% while Jefferies went from “hold” to “buy”, while raising its price target to 150 euros from 130 euros. The research office considers the aircraft manufacturer’s shares cheap and is banking on share buybacks.
On other markets, the euro increased by 0.3% against the dollar to 1.0590 dollars, while several banks saw the European currency falling to parity against the greenback. Oil prices are falling slightly. The December North Sea Brent contract lost 0.3% to $89.33 per barrel, while the November WTI contract lost 0.5% to $84.85 per barrel.
Sabrina Sadgui – ©2023 BFM Bourse