Here is the analysis of the evolution of the Paris Stock Exchange on Monday May 13, by the experts from Meilleurtaux Placement.
The markets: While waiting for US inflation…
After new peaks reached last week around 8260 points, the CAC 40 is taking a break this Monday. This evening, the French index lost 0.12% in low volumes, 8209 points. General optimism persists overall on the market, supported by the anticipation of a rate cut by the ECB next month, and still good economic signals from the United States. This evening, Stellantis and Sanofi posted excellent performances on the Paris Stock Exchange, we’ll talk more about them below. The week promises to be rich in new catalysts, with the latest, eagerly awaited figures for American inflation. As is often the case, the stock market week will really begin this Tuesday: several highlights will follow in the coming days, notably the latest quarterly company publications. Good reading!
Values: Stellantis, Sanofi and Inventiva
Stellantis The car manufacturer posted an increase of 3.7% 21.02 after a difficult period for European car manufacturers, sanctioned after the publication of their first quarter results. Stellantis recorded an interesting rebound this evening (-1% over the year), after an initial fall of more than 10% and quarterly results below expectations. The cautious comments of its financial director on the vitality of the European market have caused some concern in recent days. Monday’s rebound is explained by a positive reassessment of the group’s prospects, the expectation of potential catalysts during the investor day in June and a better relative performance compared to its European competitors such as BMW, Mercedes and Volkswagen, which all have to do with their margins and perspectives.
Sanofi The French pharmaceutical group increased by 2.36% this evening, to 92.71 after several important announcements. First of all, Sanofi announced an additional investment of 1.1 billion euros in France for the production of drugs. At the same time, the American Food and Drug Administration (FDA) granted priority review to Dupixent, a treatment for rhino sinusitis in adolescents, in partnership with the American biotech Regeneron. Already a blockbuster with sales of 10.72 billion euros in 2023, Dupixent could see its revenues increase thanks to this news. Sanofi now aims to diversify its sources of growth by investing massively in research and development, with 12 new molecules currently in clinical trials, each with significant sales potential. Since the start of the year, the group has gained almost 3%.
Inventive The biotech, eligible for PEA-PME, gained more than 4% after the publication of promising results on its treatment against NASH, a liver disease. The study shows significant improvements in patients’ health, including better management of blood sugar and fats. Analysts predict a launch of the product in the United States in 2027. For the moment, the group has lost nearly 18% since January 1, 2024.
Invest in Scholarship at the best price ! 7 offers compared
Monday’s agenda: Inflation week
Another busy week for the markets! The latest inflation figures from several countries are expected: tomorrow for Germany, Wednesday for the United States and France, Friday for the euro zone. At the same time, other data such as American retail sales, Japanese GDP for the first quarter and Chinese industrial production will also drive discussions in the coming sessions. On the business side, the quarterly results publication season is soon coming to an end. We are still waiting for reports from Veolia, Euronext, Ubisoft, Engie Cisco, Allianz and Walmart.
Tomorrow’s headlines: The morale of German bosses
On the program for this Tuesday, two economic highlights. On the one hand, the Zew business climate index in Germany. A true thermometer of economic sentiment across the Rhine, it should rebound slightly in May, while remaining at one of its lowest levels in four years. The morale of the German business community is not good, given the pressure on energy prices and the deteriorating economic outlook since the start of the war in Ukraine. In addition to the Zew index, the American PPI will be published, we talk about it again in the glossary below.
The world after: 15 billion!
This Monday, May 13, the Choose France summit opened in Versailles, bringing together 200 CEOs of international companies and 60 managers of large French firms. This edition is particularly scrutinized, because it is the scene of several major investment announcements. In total, 15 billion should be invested in France in the coming months. Amazon notably announces an investment of 1.2 billion euros intended to strengthen its logistics network in France. 3,000 new jobs (permanent contracts) should be created in France by Jeff Bezos’ firm. At the same time, Microsoft has presented a colossal commitment of 4 billion euros for the expansion of its data center infrastructures, with a new site planned near Mulhouse, as well as the expansion of existing installations in the Paris region and near Marseille . This is the most significant investment by the American company on French soil. The pharmaceutical sector is not left out with Sanofi investing 1.2 billion euros in a new Vitry-sur-Seine factory, aiming to double its production capacity for antibodies used against various serious diseases. This commitment should not only strengthen the position of the French giant in global immunology but also generate 350 new jobs. For the fifth consecutive year, France has been named the most attractive country in Europe in terms of foreign investment.
The glossary: IPC & IPP
Consumer price index (CPI).
Major economic indicator which measures the evolution, over time, of the prices of a fixed basket of goods and services commonly purchased by households. The index is commonly used to estimate inflation, that is, the general rise in prices. The CPI helps estimate consumers’ purchasing power and is often used to adjust wages, pensions and rates. The American index for April will be published on Wednesday at 2:30 p.m., it is the most anticipated data of the week by the markets.
Producer price index (PPI).
Index which measures the evolution of the selling prices of goods produced by companies, before they reach the consumer. The indicator takes into account intermediate goods (those used to produce other goods) as well as finished goods. The PPI is an early indicator of inflationary trends since an increase in production costs can be passed on to consumer prices. It is this indicator, more secondary than the CPI, that the market will monitor tomorrow afternoon.