(BFM Bourse) – After evolving on a cautious note, the Paris Stock Exchange accelerated its gains at the start of the afternoon to close up nearly 0.8% on Thursday evening. The rebound on Wall Street and the resignation of Liz Truss fueled the forward march of the Parisian index.
The rise in bond rates which had tensed the Paris Stock Exchange until the start of the afternoon is now only a distant memory. The barometer of the Parisian rating accelerated its gains after lunch, the atmosphere having calmed down with the announcement of the resignation of Liz Truss at the head of the British executive and the rebound observed on the side of Wall Street after two sessions in negative territory.
The CAC 40 therefore followed in the footsteps of the American markets to close up 0.76%. But the Parisian flagship index still refuses the obstacle of 6,100 points and ends its race at 6,086.90 points on Thursday evening.
Rise of the pound and relaxation on rates
Prime Minister Liz Truss throws in the towel after 44 days at the helm of the British government. His flash visit to 10 Downing Street was more than tumultuous. The many hiccups surrounding the “mini-budget” triggered a wave of panic on the foreign exchange and debt markets. Moreover, investors breathed a big sigh of relief after the resignation of Liz Truss.
The British pound briefly jumped more than 1% against the dollar on Thursday, in the wake of the Prime Minister’s resignation while benefiting from the decline of the greenback. The British currency still rose 0.85% to trade at 1.1314 dollars. Borrowing rates also eased after soaring 5% for 30-year debt. The latter rate fell to 3.86% and the 10-year rate to 3.82%.
The rebound in the American markets also strongly inspired the Paris Stock Exchange. The major indices gained almost 1% and even more than 1% for the Nasdaq at the close of the European markets. Tesla’s disappointment after the announcement of a lackluster outlook for 2022 has not dampened the optimism of investors who remain focused on the most convincing company publications. AT&T and American Airlines have all been praised by posting results above expectations.
However, the underlying mood remains undermined by inflation and mega-rate hikes in an attempt to temper the rise in prices. Minneapolis Federal Reserve (Fed) Chairman Neel Kashkari said on Wednesday that the Fed would not be able to pause rate hikes if inflation continued to soar, even if its rates hit 4.5. %.
Edenred and Hermès International publications hailed
The news is marked by numerous corporate publications. The payment solutions specialist Edenred stood out with a 3.45% increase at the close, thanks to dynamic activity in the third quarter, during which its organic growth was 21.4%, and its revenues passed the 500 million euro mark.
Saddler Hermès International gained almost 1.6%, driven by quarterly activity well above expectations.
Conversely, Roche Bobois fell 0.9% despite a solid quarterly publication. In the third quarter, sales of Roche Bobois amounted to 103.2 million euros, representing a rebound in sales of 24.8% over one year.
Pernod Ricard lost 1.2%, after publishing a turnover up 22% in the first quarter of its 2022-2023 financial year. “The 2% organic sales growth in the United States is somewhat worrying,” said Royal Bank of Canada, which sees signs of a slowdown in this key country.
Retirement home operator Orpea rallied more than 5.8% after spending part of the session down. The company’s share price had jumped in recent sessions without this increase being linked to any announcement.
On other markets, the euro regained ground (+0.6%) to 0.9829 dollars. Oil contracts are evolving in scattered order. The December contract on North Sea Brent gained another 0.3% to 92.65 dollars while the November contract on New York-listed WTI was down slightly by 0.1% at 85.81 dollars.
Sabrina Sadgui – ©2022 BFM Bourse