(BFM Bourse) – The Paris Bourse is approaching the month of June on a feverish note, the day after a decline fueled by investor concerns about inflation with the re-acceleration of oil prices. The rebound initiated at the start of the session, after the lifting of the containment in Shanghai, now gives way to an undecided trend…
The Paris Stock Exchange starts this month of June cautiously with a CAC 40 which oscillates around the balance at 6,467 points, the day after a drop of 1.43%. The month of May on the stock market then ended with a decline of 0.99%, the fourth monthly decline since the start of the year.
Yet the European indices were on track to rebound, cheered up by cheap buyouts and an improvement in the health situation in China. Shanghai today lifted the confinement imposed for two months on the 25 million inhabitants of the second largest city in the country. This prospect pleads for a clear recovery of Chinese economic activity.
Oil prices, market barometer
However, variations in oil prices are likely to blow hot and cold on stock market indices. Black gold prices resumed their calm on Wednesday at 117 dollars for a barrel of Brent and WTI after accelerating upwards the day before after the European agreement on an embargo on Russian oil. OPEC is reportedly considering dropping Russia from its production deals, a move that could lead some Gulf countries to put more barrels on the market, reports the wall street journal.
The evolution of oil prices will therefore be closely monitored since it is likely to fuel operators’ fears about the future trajectory of consumer prices. Inflation in the euro zone also reached a new record at 8.1% over one year in May after 7.4% in April, still at an annual rate. Moreover, retail sales in Germany fell by 5.4% in April, due in particular to a sharp rise in consumer prices. The inflationary pressures observed here and there in the euro zone should push the European Central Bank (ECB) to adopt a more aggressive stance on its monetary policy.
Maisons du monde at the relaunch
In terms of values, Sanofi rose by nearly 1% while the American health authority granted the designation of “innovative treatment” to the French pharmaceutical company’s lefanesoctocog.
Saint-Gobain fell slightly to around 55 euros. The manufacturer has acquired Canadian cladding specialist Kaycan for 928 million dollars.
Catering International Services rebounded 4.5%. The Marseille-based group specializing in the management of base camps in extreme environments, in particular on behalf of producers of raw materials, has just won two major contracts in West Africa.
Maisons du Monde is trying to revive itself on the stock market (+3.5%) after its earnings warning issued at the end of last week.
Fnac Darty yields 3.6% penalized by an analyst rating degrading to neutral, the title of the specialized distributor.
On the side of the foreign exchange markets, the euro gives up a little ground to 1.0718 dollar.
Sabrina Sadgui
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