(BFM Bourse) – The Parisian index ended up 0.11% on Wednesday, supported by the slowdown in inflation in the United Kingdom and by the leap from Kering, whose managerial reorganization convinced the market.
A bumpy session for the CAC 40 which started the day in good shape before erasing its gains and then returning to the green. The Parisian index finally ends up on Tuesday by 0.11% to 7326.94 points, after having gleaned 0.38% the day before.
The market appreciated the fall in inflation in the United Kingdom, which decelerated to 7.9% year on year in June against 8.7% in May according to data from the British Office for National Statistics. The enthusiasm of investors is palpable given the performance of the London Stock Exchange where the FTSE 100 gained 1.9%.
“Inflation has fallen more than expected in the publication of the June report published today, which we have not been able to say for some time”, underlines the bank Nomura.
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The pound falls
“Encouragingly, the dynamics of services producer prices – which the (Bank of England) Monetary Policy Committee is watching very closely – have also weakened, while upstream producer prices (goods) fell. This supports our view that the Bank of England will raise rates by 25 basis points (0.25%) rather than 50 basis points at its August meeting.” -She.
“It’s been long overdue, but UK inflation is finally down and, unusually, it’s coming down at a faster rate than expected, both in the headline index and in the ‘core’ index (excluding energy and food prices)”, underlines Craig Erlam of Oanda.
These figures also led to a fall in the pound sterling, which fell 1.1% against the dollar to 1.2892 dollars. The euro, for its part, lost ground against the dollar, losing 0.3% to 1.1196 dollars.
The market also took note of the confirmation of the easing of inflation in the euro zone. In June the rise in prices was 5.5% in the monetary union against 6.1% in May, according to a second Eurostat estimate consistent with the first.
In the United States, Wall Street is moving up slightly, with the S&P 500 advancing by 0.3% shortly before the European close. Goldman Sachs gains 1.5% despite quarterly results in sharp contraction and below expectations.
Kering tops the CAC 40
As for French stocks, Kering rose strongly (+7.4%), the market welcoming the reorganization of the group and the departure of the CEO of Gucci, which should help give new impetus to the company. In addition, according to information reported in the afternoon by Bloomberg, which cites sources familiar with the matter, the activist fund Bluebell Capital would have entered the capital of the company. The agency explains that the fund would require improvements in the level of Gucci’s activity and would have praised the merits of a rapprochement with the Swiss Richemont.
Orange gained 1.3% helped by an increase in buying advice from Citi bank.
Virbac gained 5.8% after publishing sales up 1.9% excluding currency effects in the second quarter. The group had lowered at the beginning of the month, on the occasion of a warning on results its annual objectives, which had made its action plunge.
Nexans gained 6.9% after winning a contract worth more than 1.4 billion euros for the EuroAsia electricity interconnector.
On mid-caps, the dematerialization software specialist Esker rose 9% after raising its growth target following the publication of its second quarter activity.
Conversely, SergeFerrari Group dropped 13.3%, after having revised its annual outlook downwards, an announcement following the publication of its activity in the first half.
Oil contracts are progressing a little. North Sea Brent crude for September delivery climbs 0.7% to $80.16 a barrel, while August Brent on New York-listed WTI rises 0.4% to $76.05 a barrel .
Julien Marion – ©2023 BFM Bourse