The Paris Stock Exchange experienced a second consecutive session of increases on Tuesday, but inflation expectations remain watched like milk on fire before the next monetary policy meetings.
The CAC 40 index advanced by 100.29 points to 7,099.49 points the day after a rebound of 0.48%. This did not prevent the Parisian rating from closing the month of January with a loss of 2.15% and just below 7,000 points.
The rebound is technical after a significant correction since the start of the year. Corporate publications are part of the positive trend, comments Laurent Le Grin, Managing Director of DPAM France.
But parallel to this movement, inflationary pressures continue to dominate and the market is still waiting to know if the US Federal Reserve will adopt a more aggressive attitude in March, he adds.
After supporting the recovery and the markets with its accommodative monetary policy, the US central bank is about to raise its key rates in March when its asset purchases end.
It remains to be seen whether his gesture will be deemed more aggressive than anticipated by investors.
Growth in the US manufacturing sector slowed again in January, for the third month in a row. Analysts were expecting it but, notes Mr. Le Grin, the country price component of the ISM index is clearly above expectations. This news pushed up the yields on borrowings on the sovereign debt market, which are very sensitive to the path of inflation.
The ECB, which is meeting on Thursday, should for its part maintain its monetary policy unchanged and refrain for the moment from paving the way for a rise in key rates.
ArcelorMittal stands out
The steel sector was supported by soaring prices for raw materials: the action of the world’s leading steelmaker ArcelorMittal climbed 5.73% to 27.70 euros, the largest increase in the CAC 40 index. The mining group Eramet granted itself 3.90% 94.55 euros.
TotalEnergies launches controversial project in Uganda
The French group TotalEnergies announced on Tuesday that it had signed a 10 billion dollar investment agreement with Uganda, Tanzania and the Chinese oil giant CNOOC, as part of the controversial Ugandan oil development megaproject. The action gained 2.15% to 51.30 euros.
Other oil-related securities followed the same trend, such as TechnipFMC (+5.82%), CGG (+3.26%) and Vallourec (+2.43%).
Double administrative investigation into Orpea
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The government announced on Tuesday that it would present proposals by the end of the month to prevent abuse in nursing homes and that it was launching a vast control operation within the Orpea group, accused of serious dysfunctions. The title recovered 3.35% but its cumulative losses since the beginning of the year reached more than 54%.
Extended suspension of Carmat’s activities
Carmat fell 17.08% to 13 euros, after announcing that it anticipates a resumption of the implantations of its artificial heart in October. They were suspended at the end of 2021 due to quality issues.
Socit Generale eyeing ING
The online bank Boursorama, a subsidiary of Socit Generale (+1.97% to 33.33 euros), has entered into exclusive negotiations with ING to acquire its portfolio of customers in France.
BNP Paribas buys an online bank
The banking group announced on Tuesday the finalization of the takeover of the online bank Floa, which specializes in innovative payments, from Casino and Crdit Mutuel, after having obtained the necessary authorizations. BNP Paribas shares rose 1.94% to 64.22 euros.