(BFM Bourse) – The Parisian index is moving up sharply at mid-session thanks to the strong growth of the retail giant and the parent company of Gucci. The market also continues to dissect the figures for US inflation.
The results season has brought the CAC 40 to the point that the barometer of the Paris Stock Exchange is now approaching its historic highs. The index rose 1.05% at mid-session to 7,289.58 points, not far from its session record of 7,384.86 points.
On the macroeconomic front, investors continue to decipher the US inflation figures for January, which turned out to be contrasting because they were down on December but nevertheless higher than expected by the market.
“Despite the fact that the peak of inflation has passed, questions persist about the speed and extent of its slowdown. It is this trajectory that will partly determine the direction of monetary policies in the months to come. In this sense , the publication of US inflation (CPI) for the month of January reveals that inflation continues to slow down (from 6.5% to 6.4%), but at a slower pace than expected and that these months”, emphasizes Xavier Chapard of La Banque Postale Asset Management.
Carrefour powered by a cash record
“After yesterday’s US inflation report, all eyes will turn to January’s retail sales report. [à 14h30, NDLR] to see if the U.S. consumer feels the effects of higher prices and lower demand,” said Michael Hewson of CMC Markets.
But for the time being, investors are looking to the many corporate publications, with two stars who particularly stand out within the CAC 40. Carrefour has so far posted a thunderous rise of 8.6% while the distribution group managed to stabilize its current operating margin in 2022 (excluding the integration costs of the Brazilian Grupo Big) and generated a cash flow that impresses financial analysts. The group also announced a share buyback program of 800 million euros in 2023.
Kering (+4.7%) for its part published disappointing results, with a drop in Gucci’s revenues of 14% in the last quarter of 2022 alone. Nevertheless, the conference call given by the group’s management reassured the market. “The market understood following the conference with the leaders that the reopening of China would allow the group to grow in the first half, which was not expected, and that the artistic transition underway at Gucci would not have a significant dilutive impact on margins,” said a financial intermediary. “But this rebound can be very short-term,” he warns.
Note that growth stocks, such as Schneider Electric (+2.5%), Legrand (+3.3%) or Teleperformance (+2.3%), are very well oriented.
Conversely, Bic plunged 7% while the specialist in razors, promotional items and pens anticipates a slowdown in its growth for the current year.
On the other markets, the euro lost 0.16% against the dollar at 1.072 dollars. Oil contracts are giving way. North Sea Brent crude for April delivery fell 0.55% to $85.11 a barrel while New York-listed WTI for March delivery fell 0.78% to $78.45 a barrel.
Julien Marion – ©2023 BFM Bourse