(CercleFinance.com) – The Paris Stock Exchange ended the session with a gain of 1.19%, at 7,400 points, notably driven by Eurofins (+2.9%), URW (+2.3%) and EssilorLuxottica (+ 2.3%).
The Parisian index arrogates a weekly gain of nearly 3.5% and signs an increase of 14.5% since the beginning of the year.
The session – the last of the month, quarter and half – is punctuated by a whole series of macroeconomic publications, starting with the first inflation figures in the euro zone for the month of June.
Thus, the annual inflation rate in the euro zone is estimated at 5.5% in June 2023, thus clearly decelerating after the 6.1% increase observed in May, according to a rapid estimate published by Eurostat, the European Union statistics.
In France, inflation continued to contract to +4.5%, thus marking a significant slowdown after a rate of +5.1% observed the previous month.
In addition, in May 2023, still in France, household consumption expenditure on goods increased by 0.5% over one month in volume, after a drop of 0.8% in April (revised from +0.2 point compared to the initial estimate), according to CVS-CJO data from INSEE.
Across the Atlantic, still on the data front, the Commerce Department announced that the PCE price index excluding food and energy – the Fed’s preferred measure of inflation – rose 4.6% in May, against 4.7% in April, the overall rate fell to 3.8%, ie a division by 2 in 1 year.
The sequential rise is only 0.1%, a sharper slowdown than expected: the disinflation cycle continues but the Fed’s monetary tightening cycle is not completed due to very robust figures in the real estate and the resilience of the labor market.
As an indication, traders are now counting with an 86.8% probability on a 25 basis point hike in Fed rates next month against an 89.3% probability before the publication of these figures.
In this context, the dollar erases its recent gains against the euro in reaction to this statistic, bringing the single currency to $1.0915/euro.
In the news of French stocks, Sodexo posted third quarter revenue for its 2023 financial year of 6.03 billion euros, up 9.1%, with internal growth of 10.5% but Slightly negative currency and scope effects.
Engie announces that it is revising its target for net recurring income group share for 2023 upwards to a level now between 4.7 and 5.3 billion euros, and no longer ‘in the upper half of the range of 3.4 to four billion’.
Stellantis announced on Friday that it will invest in Australian-Norwegian company Kuniko to secure its supply of low-carbon nickel cobalt sulphate.
Finally, the title Genfit gained almost 25% in the morning following the publication of the encouraging results of a phase III clinical study but ended the session with a decline of more than 8%.
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