The Paris Stock Exchange catches its breath in the face of uncertainty over rates – 05/24/2024 at 6:05 p.m.

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

The Paris Stock Exchange signed a session and a week in decline on Friday, at a time when investors are wondering about the trajectory of the key rates of the American central bank (Fed).

The flagship CAC 40 index lost 0.09%, or 7.36 points, to finish at 8,094.97 points. Over the week, it fell by 0.89%, but remained up by 1.38% since the start of the month and by 7.32% in 2024.

The market “remains constructive for risky assets”, such as stocks, with, for the moment, “economic activity which remains resilient”, inflation which should return to 2% and “rate cuts from central banks are still “, underlined Valentine Ainouz, head of rates strategy at the Amundi Investment Institute.

S&P Global’s composite PMI data, measuring economic activity in the United States, released Thursday, however, cast a chill on the market. At its highest in 25 months, the indicator reinforced the hypothesis of a continuation of the Fed’s aggressive monetary policy, removing the prospect of a first rate cut by the American monetary institution.

They add to the report of the last meeting of the Fed, according to which “many members of the institution wondered whether a rate increase would be” necessary, summarized Ipek Ozkardeskaya, analyst at Swissquote Bank.

In this context, American inflation “is key,” explains Ms. Ainouz. The market will therefore have its eyes riveted, next week, on the PCE indicator of prices in the United States, preferred by the Fed over other measures.

If certain indicators do not “allow central banks to lower their rates” and therefore “if rates remain higher for longer, this will have an impact on growth”, underlines Ms. Ainouz.

Especially since “the ECB is very comfortable with the rate cut in June, but if the Fed does not follow, it will be more complicated for the European Central Bank to carry out a complete cycle of rate cuts,” he said. -she explains.

TotalEnergies is not leaving France

The CEO of TotalEnergies (+0.44% to 65.99 euros), Patrick Pouyanné, solemnly repeated Friday to his shareholders that there was “no question (…) of leaving France”, a few weeks later having mentioned a possible relocation of the main listing of the group from Paris to the New York Stock Exchange.

He said the “idea is simply to be able to offer American investors the same TotalEnergies ordinary shares that we offer to our European shareholders.”

Patrick Pouyanné was reappointed by 75.73% by the General Assembly and the group’s climate strategy was approved by 79.72%.

Renault starts, Compagnie des Alpes climbs

The title of the manufacturer Renault finished at the top of the CAC 40, increasing by 5.21% to 50.30 euros, benefiting from a positive rating from analysts at the UBS bank.

Compagnie des Alpes, which owns around ten mountain areas (Les Arcs, Val d’Isère, Meribel…) and around a dozen leisure parks (Asterix, Futuroscope, Walibi…), jumped 8.41 % at 15.98 euros. The market welcomed the publication of a “record” turnover of 761 million euros in the first half of its 2023/24 financial year, up 12.2% compared to the first half of the previous year.

Euronext CAC40

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