The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 1.05% on Friday, its best session since December 8, supported by a decline in interest rates on the bond market.
The flagship CAC 40 index advanced 77.52 points to 7,465.14 points. Over the week, it gained 0.60%.
Markets spent the week juggling between two scenarios regarding the evolution of interest rates.
The first anticipates “a drop in rates in March”, which causes broad “optimism” in the markets, explains Céline Weill-Alliel, manager at Uzes Gestion.
The second “much more cautious”, and more present in the minds of investors, questions the advisability of lowering rates from March given the dynamism of the American economy and the risk of a resumption of inflation, continues the expert.
On Friday, the interest rates on loans from European states fell significantly, notably in reaction to the comments of the President of the European Central Bank (ECB) Christine Lagarde who estimated on Thursday that a reduction in key rates once the battle against inflation will be won is “logical”, without risking giving a date.
The interest rate on ten-year French government bonds fell to 2.68% around 6:00 p.m. (5:00 p.m. GMT), compared to 2.73% at the close on Thursday.
In France, INSEE confirmed on Friday its estimate of inflation in December, at 3.7%.
Investors are now starting to look to the results of companies that started in the United States.
Burst of orders
The French Ministry of the Armed Forces has placed an order for 42 additional Rafale combat aircraft, representing an “investment of more than 5 billion euros”.
The three manufacturers of this plane benefited: Dassault Aviation, which oversees 60% of the value of the plane, took 2.82% to 189.70 euros, the electronics manufacturer Thales gained 2.23% to 141, 85 euros and the engine manufacturer Safran increased by 2.76% to 168.50 euros.
Burberry puts luxury on the back burner
Luxury companies suffered after the downward revision of the financial forecasts of the British group Burberry, due in particular to weakness in the United States. The group fell more than 10% in London.
In Paris, Kering lost 1.20% to 366.70 euros, LVMH 0.34% to 669.90 euros but Hermès resisted (+0.01% to 1,836.80 euros).
Airbus aircraft sales record
The European aircraft manufacturer achieved the best commercial performance in its history in 2023, garnering 2,094 net orders to meet the expected growth in global air traffic and the need for aircraft that emit less CO2.
“Financial forecasts will be achieved comfortably”, both in profitability and in available cash,” Jefferies analysts said in a note, considering the figure “slightly higher” than expectations.
The stock gained 3.70% to 149.20 euros.
Vinci stocked up on cash
The cash flow of the construction and concessions group Vinci will be significantly higher than its forecasts, exceeding its already record level in 2022 according to a press release published Thursday.
“This particularly remarkable situation would result in particular from a level of customer collections at the end of the year higher than expectations and the time delay of certain investments” explains the group. The action rose 1.90% to 116.68 euros.
Casino shareholders accept the safeguard plan
The creditors and shareholders of the distribution group in great difficulty Casino, called upon to decide on the safeguard plan negotiated in recent months, have unsurprisingly largely endorsed it, according to a press release from the group whose share is worth 58 cents (+ 1.05% on the session).
© 2024 AFP
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