The Paris Stock Exchange was trading higher on Monday, after a gloomy past week and a budget agreement signed at the last minute this weekend in the United States which averts, at least temporarily, the paralysis (“shutdown”) of the federal government.
The flagship CAC 40 index rose 0.37% to 7,161.19 points around 10:25 a.m. On Friday, it ended up slightly by 0.26%, benefiting from a decline in inflation in the United States and Europe but held back by the political battle over the American budget.
This weekend in the United States, elected Republicans and Democrats adopted a last-minute emergency measure to continue funding the federal administration. But this measure is only valid for 45 days and it notably excludes aid to Ukraine requested by the White House.
If the deadline has only been postponed for the moment and “we will probably have to experience this political circus again”, the agreement “is a relief for the markets”, notes Michael Hewson, analyst at CMC Markets.
Parisian investors will now be able to focus on economic data, such as the manufacturing PMI index in France, published Monday by S&P global.
The market also continued to benefit from data, published on Friday, on inflation in the euro zone, where the rise in consumer prices fell to 4.3% over one year, its lowest level in two years, after 5 .2% in August.
“Good news” for Xavier Chapard of LBPAM, even if the price rise “remains more than twice above the targets of central banks on both sides of the Atlantic and convergence towards this target is likely to be long and uncertain.”
For him, “the Fed and the ECB are done with rate hikes” and they “could even start to reduce their rates a little from next spring”.
As a result, “monetary policy and especially the review of market rate expectations could therefore be a lesser brake on the markets from now on, or even a slight support as the end of the year approaches.”
Luxury gets a makeover
LVMH was sought after (+1.06% to 724.00 euros around 10:20 a.m.), along with Hermès (+0.90 to 1,745.40 euros) and L’Oréal (+0.79% to 396.30 euros) . The sector benefited from a good economic indicator in China and the American budget agreement, two important markets.
The automotive market on the rise
Sales of new cars in France continued to grow in September with a 10.7% increase in registrations of new private vehicles compared to September 2022, but 2024 promises to be less prosperous.
Stellantis advanced Monday around 10:20 a.m. by 0.10% to 18.22 euros. Renault gained 0.58% to 39.10 euros.
Planisware schedules its IPO
The project management software specialist launched the IPO process on Monday, aiming for a first listing on Euronext on October 11, with an issue price between 16 euros and 18 euros per share. The company will place at least 15 million existing shares and intends to raise between 241 and 272 million euros, according to a press release.
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