The Paris Stock Exchange rose 0.25% in early trading on Friday, with company results being rather well received by investors, unlike the day before, and before a report on inflation in the United States.
The flagship CAC 40 index advanced by 20.39 points to 8,037.04 points around 9:30 a.m. On Thursday, it fell 0.93%.
Over the week, it is currently progressing by 0.19%. Its peak, 8,253.59 points, dates back to April 2.
If Thursday’s session had been marked by poorly received results, in Paris (Herms, Dassault Systmes) but also in the United States (Meta), Friday begins as a little revenge: several big names from the Parisian coast have passed their examination of quarterly passage, as do Microsoft and Alphabet in the United States.
Investors can hope that the macroeconomy will have the same fate in store for them: on Thursday, they were shocked by American growth in the first quarter that was weaker than expected, while price data had been stronger than forecasts.
But on Friday, a new American price indicator is expected, the PCE. It is the preferred barometer of the American Central Bank (Fed) to decide on its monetary policy. It meets next Tuesday and Wednesday.
We still think the Fed could cut rates twice by the end of the year, but only starting in September. And new surprises in the rise in inflation or the job market would quickly call into question any rate cut this year, write analysts at Banque Postale AM.
On the bond market, French interest rates have risen over the last two sessions, settling around 3.10% on Friday.
An aggravating factor of tension, the spring verdicts of the rating agencies Moody’s and Fitch on French sovereign debt are expected this evening, while the recently announced deterioration of public finances suggests at best unflattering comments.
Saint-Gobain well built
The construction materials group Saint-Gobain achieved the best performance of the CAC 40 at the start of the session (+4.35% to 73.44 euros). It achieved a turnover of 11.35 billion euros in the 1st quarter of 2024, a drop of 8.5% over one year linked to the decline in new construction in Europe and a scope effect on the group’s structure.
Saint-Gobain, which continues to anticipate a decline in some of its markets for 2024, has nevertheless maintained its forecast of achieving a double-digit operating margin for the year 2024.
Among the other stocks in the flagship index which rose after their results, TotalEnergies gained 0.40% to 68.33 euros and Vinci 0.45% to 110.65 euros.
Aeronautics bends
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After their results, Airbus (-2.24% to 154.92 euros) and Safran (-1.25% to 204.90 euros), were at the bottom of the CAC 40. For the aircraft manufacturer, the sluggish start to the year masks unequal visibility, estimate Oddo analysts. But for them, the weakness of this first quarter and the cautious comments on the health of the supply chain (supply chain, Editor’s note) will certainly penalize the short-term price.
Nexity bounces back
Nexity will cut 502 positions to deal with the deep construction crisis, the leading French real estate developer announced on Thursday.
We continued our actions in terms of reducing our operating cost base, underlined the group’s deputy general director, Jean-Claude Bassien. The price rebounded by 9.28% to 10.42 euros, but the stock remains down almost 40% since the start of the year.
Amundi, record outstandings
The French asset manager Amundi, leader in the sector in Europe, reported a record level of assets in the first quarter of 2024, notably driven by good market dynamics. The collection carried out by the Crdit Agricole subsidiary also positively surprised analysts. The action soared by 7.38% to 68.25 euros, up more than 10% since January 1.