(CercleFinance.com) – The Paris Stock Exchange recorded a third session of decline in a row on Wednesday, caution being in order after the publication of several statistics including the publication of inflation figures in France. The CAC 40 index begins the day with a loss of 0.5% to 7174 points.
The Parisian market has had a sluggish start to the week so far, illustrated by a second day of decline on Tuesday (-1.3%) which brought it back towards the symbolic threshold of 7200 points.
‘The difficulty of the moment is to bring together enough elements to relaunch the progression of the Parisian index’, recognize analysts at Kiplink Finance.
Investors awaited with some feverishness the consumer price statistics and the evolution of the gross domestic product (GDP) which were published this morning in France.
According to the provisional estimate made by INSEE at the end of the month, consumer prices in France should increase by 5.1% over one year in May 2023, thus marking a clear deceleration after +5.9% the previous month.
In the first quarter of 2023, the evolution of France’s gross domestic product (GDP) in volume terms is confirmed at +0.2% sequentially, according to detailed CVS-CJO data from INSEE, after a stagnation observed in the last quarter of last year.
Figures below consensus, such as those unveiled in Spain yesterday, could encourage a further decline in government bond yields and allay fears about European Central Bank (ECB) rates.
As things stand, the month of May should end with a loss of close to 3% for the CAC 40 index.
“May will have finally turned out to be a very interesting month, with huge gains for technology stocks and a decline in defensive stocks, unless something unlikely happens today,” commented the Danske Bank teams.
The good performance of ‘high tech’ securities – especially those linked to artificial intelligence such as Nvidia – enabled the Nasdaq to gain 0.3% yesterday, but the Dow Jones lost 0.1%.
The risk of a confrontation in Washington over the debt ceiling also continues to worry managers, who fear a repeat of the episodes of default that had shaken the country’s economy in the past.
If US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy have reached an agreement on the debt ceiling, Republican lawmakers, who have yet to validate the agreement, could judge that their leader has done too much concessions.
A decisive vote is expected today in the House of Representatives, where the Republicans have the majority, before the project is submitted Friday to the Senate, which is controlled by the Democrats.
Time is running out, as the Treasury Department estimates that ‘X date’ – by which the government will run out of cash – is Monday, June 5.
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