The Paris Stock Exchange was calmed on Thursday by the slowdown in US inflation in October, which benefited risky assets.
Consumer prices rose 7.7% in October year on year in the United States, less than in September and less than expected. Over one month, prices rose by 0.4%, also less than expected.
“Consumer prices in the United States are showing signs of easing,” write experts from broker Aurel BGC, noting that “consumers no longer seem to accept price increases, especially in goods”.
“The disinflation movement is confirmed, but it will be slow and, in the short term, will put strong pressure on corporate margins,” they temper.
Market obsession this year, inflation had also become one of the main themes in the campaign for the midterm elections, which were held on Tuesday in the United States, and whose final results were still not known. immediately.
Noting the downturn in US inflation, the market is starting to think that the US central bank may slow the pace of rate hikes at its next meeting in mid-December.
As a result, on the bond market, the yield on France’s ten-year bonds melted to 2.49%, against 2.69% the day before. Its German counterpart (Bund) fell to 2.01% against 2.17% on Wednesday evening.
And technology stocks, sensitive to rates, were boosted.
Tech in shape
STMicroelectronics, Dassault Systemes and Worldline climbed more than 7%, Capgemini took more than 5%.
Teleperformance ESG controversy
Teleperformance shares fell more than 30% before being suspended at the company’s request, after the announcement of an investigation into possible labor law violations in Colombia, its third country of establishment.
The group assured that the management team of the subsidiary in Colombia had “always developed the company in compliance with the law” and announced a share buyback program for 150 million euros.
“Their press release was not considered very convincing,” Charles De Riedmatten, equity manager of Myria AM, told AFP. “There is a kind of fed up with investors on Teleperformance’s ESG issues. They want the company to take these issues more seriously”.
Trading in the stock will resume on Friday when trading opens, the company said.
Crédit Agricole does less than expected
The French bank Crédit Agricole suffered a drop in its net profit of almost 10% over one year in the third quarter, to all the same 2 billion euros and after a historic year 2021. Its action lost 2.52% to 9.46 euros.
Engie takes advantage of the courses
Engie gained 3.95% to 13.90 euros after raising its targets for the year 2022 and publishing higher results in the third quarter, driven by high energy prices and growth in most of its activities. .
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