The Paris Stock Exchange rose 0.39% in early trading on Wednesday, the report of the last meeting of the American Central Bank not having shaken investors’ convictions.
The flagship CAC 40 index rose by 28.23 points to 7,257.68 points shortly after 9:20 a.m. On Tuesday, it fell 0.24%.
The stock market week is truncated by a Wall Street holiday on Thursday. On Friday, the New York Stock Exchange will also only be open for half a day.
In this context, the report of the discussions of the American Central Bank, published on Tuesday, did not change the vision of investors on monetary policy in the coming months.
For those responsible for the institution, at the time of the meeting on November 1, rates will remain high for a long time and it is not yet time for discussion regarding a possible rate cut, summarizes Christopher Dembik, from Pictet AM.
But in the meantime, the slowdown in American inflation convinced investors that the Fed’s key rates would fall more sharply and more quickly than their forecast at the start of the month.
These speculations partly explain the good underlying trend of the indices, according to Mr. Dembik.
The markets anticipate a slowdown in inflation sufficient to allow a reduction in key rates before mid-2024 without growth slowing down significantly, analysts at Banque Postale AM agree.
The other event of Tuesday evening, the results of American chip giants Nvidia, did not push investors to change their vision on the potential of artificial intelligence, one of the main drivers of the indices in 2023.
Despite strong growth in results, the stock fell slightly in post-market trading.
Expectations may simply have been very high for a stock that has risen more than 240% since the start of the year, say Deutsche Bank analysts.
In Paris, STMicroelectronics rose 0.19% to 41.29 euros per share.
Casino, new warning
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The distributor Casino, in financial difficulty, announced on Wednesday that it was once again lowering its forecasts for its activities in France for the year 2023 and now anticipates an operating loss of 100 million euros, whereas it had announced that it was forecasting a profit of operating income (Ebitda) of less than 100 million at the end of October.
The stock fell by 2.30% to 0.80 euros, bringing its decline to more than 90% since the start of the year.
Elior reduces its losses
The collective catering group announced on Wednesday that it had reduced its net loss in 2022/2023 to 93 million euros, compared to 427 million in the previous year, and welcomed the beginnings of a recovery. Investors were satisfied and the action rose 8.51% to 2.32 euros, although still losing 30% since January 1st.
After revealing its ambitions for 2024, Interparfums also gained 2.83% to 47.25 euros.