The Paris Stock Exchange gained 1.57% on Wednesday, propelled by the slowdown in inflation in the United States which could encourage the American central bank to adopt a more accommodating monetary policy.
The star CAC 40 index gained 113 points to 7,333.01 points, its strongest increase since June 2. It recovered 3.11% over the week, offsetting the majority of its losses from the previous week (-3.89%).
The Parisian rating opened higher but the trend increased significantly in the second part of the session, after the publication of the American inflation indicator CPI.
Inflation slowed again sharply in June in the United States, to 3% over one year against 4% the previous month, and thus reached its lowest level since March 2021.
“We have entered a period of normalization, with monthly price changes of around 0.2%”, as in the pre-Covid period, notes Patrice Gautry, chief economist of the Private Banking Union. “The excesses are reduced, even in volatile sectors”, such as new cars, or the price of plane tickets, he adds.
In other good news, core inflation, i.e. not taking food and energy prices into account, fell to 4.8% over one year, from 5.3% the previous month, a rate lower than forecast.
If inflation is still below the 2% rate targeted by the central bank, the trend will allow for more balanced debates on the institution’s response to the situation, with more weight for members asking a flexible position, according to Mr. Gautry.
The markets had known last week a “warning shot” by noting the determination of the Fed on next rate hikes, describes the economist.
If a new rise in the key rate in July seems to have taken hold in the head of the market, they now consider a second rise at the next meeting unlikely.
As a result, interest rates on government borrowings fell sharply on the bond market. The rate for the French 10-year loan fell to 3.09%, against 3.21% on Tuesday.
Casino speculation
The heavily indebted Casino group climbed 10.75% to 3.32 euros, investors rejoicing in the possibility that the two groups of contenders for the takeover of the brand will increase their offer, according to Les Echos.
Rallye also gained 6.98% to 0.97 euro.
Dissonant notes
The semiconductor sector benefited from a recommendation from analysts at Jefferies: STMicroelectronics gained 4.68% to 46.49 euros, and Soitec 6.59% to 161.80 euros.
Conversely, Air-France-KLM fell 3.80% to 1.63 euros after Deutsche Bank analysts expressed concern over the ability of European airlines to keep ticket prices as high as they are now. .
Thales to spend one billion euros on AeroComms
The French technology group Thales announced on Wednesday that it has entered into exclusive negotiations to acquire Cobham Aerospace Communications (AeroComms), a company providing security communication systems for cockpits, for 1.1 billion dollars.
The price of the acquisition is considered “reasonable” in a note from Jefferies, the operation being considered “positive” for the company.
Its action gained 3.01% to 137.10 euros.
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