(BFM Bourse) – The rally at the start of the year continues for the Paris Bourse. The CAC 40 closes up 0.7% and continues a second weekly increase (+2.4%) thanks to a slowdown in US inflation, suggesting a more accommodating tone from the Fed on its rate hikes .
The Paris Stock Exchange remains on course despite a slight slack at the start of the afternoon. The CAC 40 closed up 0.69% at 7,023.50 points, after recording a session and annual zenith at 7,035.82 points. Over the whole week, the gains of the star Parisian index amounted to 2.37% and 8.5% since January 1.
However, the rise of the Parisian place had lost intensity at the beginning of the afternoon, the investors were scalded by the comments of the American banks on a possible recession and an increase in their provisions in this perspective.
“The market is ready to succumb to profit taking after not fantastic results from the banks,” said Patrick O’Hare of Briefing.com in a note quoted by AFP. American operators complied, with an undecided trend on the other side of the Atlantic. The Dow Jones is close to equilibrium, while the S&P 500 and Nasdaq lost 0.4% at the close of European markets.
Earlier in the day, traders hailed the resistance shown by the German economy. The German statistics agency Destatis announced on Friday that the German gross domestic product had increased by 1.9% last year.
“It is more interesting to note that the GDP seems to have stagnated in the fourth quarter” and not declined as feared, underlines Capital Economics. “The eurozone as a whole is likely to prove more resilient to the energy crisis than we initially feared,” the economic think tank concludes.
For its part, the British economy grew by 0.1% over one month in November, again thwarting the expectations of economists who were counting on a contraction of 0.3%, underlines Michael Hewson, of CMC Markets.
The take-off of Air France-KLM
In terms of values, Air France-KLM finished at the top of the SBF 120 index with an increase of 6%. The airline group benefited from higher recommendations from Davy Research and UBS as well as several positive signals for the sector as a whole.
The automotive sector was particularly hard hit by price cuts by Tesla. In Paris, Stellantis lost 3.8%, posting the largest drop in the CAC 40. Renault also fell (-1.45%).
Bouygues fell for its part by 3% penalized by a lowering of recommendation from Morgan Stanley to “underweight”.
On the smallest caps, the specialist in combustion smoke evacuation devices Poujoulat jumped 8.6% after publishing excellent half-year results and raising its outlook for the current financial year.
On other markets, the euro lost 0.5% against the greenback at 1.0807 dollars. Oil prices are rising. Brent from the North Sea rose 0.8% to 84.67 dollars a barrel, that of WTI listed in New York rose 1.1% to 79.25 dollars a barrel.
Sabrina Sadgui – ©2023 BFM Bourse