The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed up 1.07% on Tuesday on the eve of US inflation, particularly driven by luxury after measures taken by China to support its real estate sector.
The star CAC 40 index gained 76.32 points to 7,220.01 points. On Monday, it closed up 0.45%.
On the Parisian market, the rebound of the day before continues, “we agree to talk about buying cheaply” after the declines of last week, notes Eymane Cherfa, financial analyst at Myria AM.
The market was reassured by the announcement of the extension of support measures for the real estate sector in China, which is crumbling under debt, “which could translate into new measures in favor of a rebound in economic activity” , says Michael Hewson of CMC Markets.
However, “risk-taking is limited on the equity market on Tuesday before the publication of inflation in the United States on Wednesday and the launch of the publication of corporate results”, sums up Eymane Cherfa.
The US government will publish the consumer price index (CPI) for June on Wednesday, expected to rise by 0.3% over the month, to 3.1% against 4% over twelve months, a significant slowdown.
The indicator is expected by the markets, in the wake of the US central bank’s monetary policy.
While the markets are now confident that the Fed will indeed raise its key rate by a quarter point on July 26, despite its pause during the previous meeting, they are more undecided on what the Federal Reserve (Fed) will do next. .
In addition, at the end of the week, the first company results will be published.
Monday evening, the Banque de France reported a sharp slowdown in price increases for businesses, according to its monthly survey of around 8,500 businesses between June 28 and July 5.
“The Banque de France explains that only 8% of companies raised their prices in June (in industry, editor’s note), a lowest since 2021, and that 6% of them lowered their prices, a peak for three years”, underlines Eymane Cherfa.
“These data also demonstrate a normalization of margins to come,” continues the analyst.
Luxury driven by China
Heavyweights of the rating, luxury stocks were on the rise, with new nudges from the Chinese authorities to revive the economy, the country being an important market for the sector. Hermès closed up 2% at 1,914.20 euros, LVMH gained 2.21% at 849.30 euros and Kering 1.56% at 488.25 euros.
URW takes the lead in the CAC 40
Unibail-Rodamco-Westfield, the main real estate value of the CAC 40, equally exposed to China, closed at the top of the index, up 4.19% to 51.24 euros.
Casino and Rally down
The Minister of the Economy Bruno Le Maire judged “solid” the two offers to take over the distributor in financial difficulty Casino, without taking sides, simply indicating that “the State will be vigilant on employment” and on maintaining the ” headquarters in Saint-Étienne”, Tuesday during questions to the government.
Casino’s share price closed down 0.66% to 3 euros, and its parent company, Rallye, ended down 7.77% to 90 cents.
© 2023 AFP
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