(BFM Bourse) – The Parisian index is moving up slightly at mid-session in a session driven above all by inflation figures in the United Kingdom.
Timidly, the Paris Stock Exchange is trying to move forward. After having gained 0.08% the day before, the CAC 40 is at the same pace as senator this Wednesday, nibbling 0.07% to 7580.74 points at mid-session.
The trend is, however, helped by the sharp decline in inflation in the United Kingdom. The price increase stood at 3.9% over one year in November compared to 4.6% in October.
This good figure accelerated the downward movement in bond yields, with in particular the rate of Germany’s 10-year debt falling below 2% for the first time since the end of 2022.
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No crash for Air France-KLM stock
The evolution of inflation in the United Kingdom reassures investors in the idea that inflation is falling almost everywhere in the world and that the major central banks will make key rate cuts next year.
“Investors expect rapid easing from central banks next year. But markets seem to have gone too far in pricing rate cuts,” says Mark Haefele, investment director at UBS.
On the value side, the decline in bond rates benefits junk stocks, such as Maisons du Monde (+6.8%), Atos (+5.3%) and Fnac Darty (+3.5%).
The Air France-KLM share is holding up well (-0.5%) while the Court of Justice of the European Union annulled the decision of the European Commission to validate the April 2020 and March 2021 rescue plans of air transport group. The CJEU ruled against Brussels, which considered that these measures did not benefit the Air France-KLM holding company for the first plan and KLM for the second.
On other markets, the euro lost 0.4% against the dollar. Oil continues to rise, still supported by tensions in the Red Sea, an important transit point for hydrocarbons. The February contract on North Sea Brent advanced 1.1% to $80.12 per barrel while that of the same maturity on WTI listed in New York gained 1.3% to $74.91 per barrel.
Julien Marion – ©2023 BFM Bourse