The control room of Euronext, the company that manages the Paris stock exchange, at La Défense, November 21, 2019 (AFP / ERIC PIERMONT)
The Paris Stock Exchange gained 2.50% on Wednesday, trying to see the glass rather half full after the publication of US inflation slowing slightly but still very high and above forecasts.
The CAC 40 index rose 152.82 points to 6,269.73 points, confirming its technical rebound the day before (+0.51%).
In the United States, inflation in April, over one year, stood at 8.3%, more than expected, against 8.5% in March, according to the consumer price index (CPI). The good news is that this slowdown is the first in eight months and could signal the start of a slow decline in inflation.
However, so-called core inflation, which excludes volatile energy and food prices, accelerated over one month, to 0.6% against 0.3% in March, at a level above expectations analysts.
“There are positive things in these numbers but we also have the feeling that we haven’t reached the end, a lot of the worst is over but inflation is still high and still requires action from the Fed. “, comment Alexandre Baradez, analyst of IG France.
He also notes that services helped push up the consumer price index in April.
“If inflation extends to services, which represent a large part of American GDP, the market thinks that we may not be at the end of our surprises,” he explains.
Nevertheless “the reaction on the markets is positive because we have the feeling that we are reaching a peak” of inflation, underlines Mr. Baradez, who warns however that this reaction may not be final.
Several US central bank officials said on Tuesday that a rapid rate hike in the coming months was necessary in the face of the threat posed by high inflation, even if, according to some of them, unemployment could temporarily rise a little. .
European Central Bank (ECB) President Christine Lagarde on Wednesday set the stage for an interest rate hike in July, the first since 2011.
Luxury helps the CAC
L’Oréal (+4.81% to 323.85 euros) finished at the top of the CAC 40, LVMH (+4.28% to 573 euros), Kering (+3.77% to 459.60 euros) and Hermès (+3.69% to 1,054 euros) were not far behind, driven by the good results of the Italian Salvatore Ferragamo who announced the objective of doubling his revenue “in the medium term”.
Organizational chart turned upside down at Stellantis
The director of the European zone of Stellantis, Maxime Picat, has been appointed director of purchasing for the group and replaced by the former director of Opel Uwe Hochgeschurtz, announced the number six in the world of the automobile.
The Stellantis share gained 2.89% to 13.23 euros, as did other stocks in the sector such as Renault (+2.55% to 22.95 euros), Faurecia (+5.99% to 21.41 euros) or Valeo (+4.13% to 17.78 euros).
Alstom struggling
Alstom recorded a net loss of 581 million euros in its staggered 2021/22 financial year, penalized by a depreciation of its stake in the Russian railway manufacturer Transmashholding and accounting losses linked to the acquisition, in early 2021, of Bombardier Transport.
The title ended on a decline of 5.16% to 21.85 euros. During the session, it had lost up to 11% due to investor fears about the group’s future cash flow after a conference dedicated to analysts.
© 2022 AFP
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