(BFM Bourse) – The CAC 40 is falling sharply at the start of the afternoon this Monday, while the German economy has contracted in 2023, according to a first estimate.
A sunny Monday for Wall Street, but not for the CAC 40. The flagship index of the Paris Stock Exchange dropped 0.46% to 7,431.03 points this Monday, while the American markets are closed due to a day holiday (Martin Luther King Day).
Investors are taking note of the announcement of a contraction in German gross domestic product for 2023 of 0.3%. In the fourth quarter, GDP also fell by 0.3% after stagnating in the third quarter. Technically, Germany therefore narrowly avoids recession, which involves two consecutive quarters in the red. But this is just a simple semantic consideration.
In any case, Capital Economics expects the German economy to “struggle” this year. “The recessionary conditions that have persisted since the end of 2022 are expected to continue this year,” adds the think tank.
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L’Oréal declines, Atos falls
This week many members of the European Central Bank and the US Federal Reserve (Fed) will speak over the coming days, including Christine Lagarde at the Davos Economic Forum. Retail sales in the United States and the Fed’s beige book will also be published on Wednesday.
On the value side, Atos lost 12.4% after announcing the departure of its general director as well as a warning on its cash flow for 2023. Dassault Aviation dropped 5.5% after publishing aircraft deliveries lower than its objectives for 2023.
L’Oréal dropped 3.5% while UBS went from buy to “neutral” on the stock, judging that the stock’s potential is now limited, given the stock’s recent outperformance.
Schneider Electric dropped 1% while Royal Bank of Canada went from “sector performance” to “underperformance” on the stock.
Carmat, for its part, fell 5% after announcing results lower than forecasts as well as the upcoming launch of a capital increase in the very short term. On other markets, the euro is stable against the dollar at 1.0956 dollars. Oil is losing ground. The March contract on North Sea Brent fell 1.1% to $77.40 per barrel, while the February contract on WTI listed in New York lost 1.2% to $71.79 per barrel.
Julien Marion – ©2024 BFM Bourse