The Paris Stock Exchange awaits indicators but lets itself be carried by China

The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)

The Paris Stock Exchange gained 0.29% on Wednesday morning, making up for its losses the day before thanks to signals of economic recovery in China, but caution remained in order, pending new macroeconomic indicators in Europe.

The star CAC 40 index gained 33.68 points to 7,301.63 points around 10 a.m. The day before, the Parisian rating had ended in decline but closed the month of February up 2.62%.

The indicator of manufacturing activity in China, published overnight, “returns frankly to the growth zone and returns to a level it had not seen since April 2012”, commented economist Véronique Riches-Flores, of the firm RichesFlores.

“The post-Covid catch-up is therefore well and truly underway and is bearing fruit in all sectors of the economy, including construction,” she continued.

Manufacturing activity in China actually experienced its best monthly upturn in a decade in February, with factories gradually resuming their usual pace with the end of anti-Covid restrictions.

But after the figures for “French inflation and Spanish inflation which unexpectedly accelerated by 0.2 points in February to 7.2% and 6.2% respectively”, the markets keep the idea that ” domestic inflationary pressures remain too strong,” commented Xavier Chapard of La Banque Postale AM.

In this perspective, the markets will have their eyes on several indicators during the session: “the latest manufacturing PMI indices for Spain, Italy, France, Germany and the United Kingdom”, as well as the preliminary figures for inflation in Germany in February, “which investors expect to drop from 9.2% to 9%”, presents Michael Hewson of CMC Market.

Finally, “as far as American economic activity is concerned, it is the ISM manufacturing activity index for February that will be looked at”, he continues.

1.5 billion euros in share buyback for LVMH

The French luxury giant LVMH (+ 2.24% to 806.70 euros) announced on Wednesday its intention to buy back for a maximum amount of 1.5 billion euros shares, with a view to canceling them, a strategy which has the rating among large groups that have recorded record profits.

On the CAC 40, luxury was also driven by good news from Asia, an important market for the sector. Around 10:15 a.m. Kering gained 2.38% to 568.10 euros and Hermès 1.69% to 1,744.50 euros.

Eurofins severely sanctioned

Eurofins is the group that recorded the largest drop in the CAC 40, plunging 10.45% to 59.12 euros around 10:15 a.m., after announcing a net profit down 22.6%, to 606 million euros for the year 2022.

© 2023 AFP

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