The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 1.39% on Tuesday, delighted by the drop in inflation in the United States, with analysts judging the publication to bode well for the monetary policy of the American central bank (Fed).
The flagship CAC 40 index advanced 98.62 points to finish at 7,185.68 points, the highest since the end of September. On Monday, it gained 0.60%.
The publication of data on American inflation “was the meeting of the week and the figures pleasantly surprised”, head of market analysis at IG France.
Inflation slowed in October in the United States, to 3.2% over one year, compared to 3.7% in September, thanks in particular to the drop in gasoline prices at the pump, according to the CPI index published by the Department of Labor. In addition, so-called core inflation, which excludes volatile food and energy prices, is at its lowest in more than two years, at 4.0% year-on-year.
“It is most likely that these good results will once again fuel expectations of a more rapid reduction in key rates” from central banks than hitherto, estimate analysts at Riches Flores.
“After the concerns arising from the latest interventions by members of the American central bank (Fed), the markets greet the news with a sharp drop in American bond rates,” they continue.
The interest rate on the American government loan with a 10-year maturity fell to 4.44%, compared to 4.64% on Monday, that of France rose to 3.15%, compared to 3.29% the day before. and the German at the same maturity moved at 2.59% against 2.71%.
Markets expect the Fed to maintain its key rate in the same range for the third time in a row at the end of its next meeting in December.
The American monetary institution has raised its interest rates 11 times since March 2022, bringing them to their highest level in 22 years, in a range of 5.25 to 5.50%.
Real estate and tech boast
After the publication of falling US inflation figures, the fall in bond yields led to the rise in stocks in the technology and real estate sectors.
Shopping center giant Unibail-Rodamco-Westfield ended up 7.24% at 53.62 euros.
Elsewhere in the real estate sector, Icade jumped 7.38% to 34.04 euros, Covivio 6.84% to 45.00 euros, Mercialys gained 5.05% to 8.54 euros, Gecina 4.60% at 101.20 euros and Nexity 4.93% at 14.48 euros.
As for technology stocks, the Franco-Italian manufacturer of electronic components Stmicroelectronics gained 3.81% to 40.15 euros.
The French electronic payments specialist Worldline closed up 8.26% at 13.84 euros, the group’s action having benefited from the announcement of Apple which is launching in France a service which transforms an iPhone into payment terminal. Worldline announced in a press release that it had already “activated +Tap to Pay on iPhone+ for large merchants in France”.
© 2023 AFP
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