The Paris Stock Exchange closes higher, relieved by the American debt

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

The Paris Stock Exchange ended the session up 1.87% on Friday, relieved by the end of the threat of a default of payment from the United States and attentive to a possible support plan for the real estate sector in China.

The star CAC 40 index gained 133.26 points, to 7,270.69 points, after gaining 38.73 on Thursday. Over the week, the Parisian place however fell by 0.66%.

“The rebound from the day before continues, driven by progress on an agreement on the American debt ceiling but also on hopes for a possible stimulus package for real estate in China, which improves the outlook for support for the market”, underlines Gilles Guibout, director of strategy for European equities at Axa IM.

Unibail-Rodamco-Westfield, the main real estate value of the CAC 40, closed at the top of the index, up 5.35% to 44.70 euros, and values ​​”exposed to China, such as luxury, were well oriented”, continues the analyst.

In detail, LVMH took 3.11% to 830.90 euros, Hermes 2.55% to 1,957.20 euros and Kering 2.12% to 506.70 euros.

Investors have also been very attentive to the American economic news, reassured by the vote in the Senate, Thursday evening, of the text suspending the debt ceiling, which definitively rules out a payment default by the United States in the short term.

However, “there is a bit of a wait-and-see attitude on the part of investors to understand which direction to take in the midst of discordant indicators on the economy: it seems to be slowing down but the job market remains well oriented. We must add to this this raises questions about what the Fed will decide to do”, continues Gilles Guibout.

The number of job creations in the United States in May fell in the middle of the European session and reflects a job market that remained very solid. 339,000 jobs have been created in the United States, announced Friday the Department of Labor, when only 190,000 were expected, according to the consensus of MarketWatch.

Moreover, the unemployment rate is up slightly but remains historically low and wages are rising, but less quickly, which is good news for the fight against inflation.

“Overall, the signals are somewhat mixed regarding the next move from the US central bank (Fed),” said Christophe Boucher, chief investment officer of ABN AMRO Investment Solutions.

At the Fed’s next meeting on June 13-14, the central bank could choose to hike rates for an 11th straight time, or pause to observe the effects of previous hikes and avoid slowing the pace too much. economic activity and cause a recession.

Banks backed by bonds

On the bond market, interest rates in France tightened, the rate for the 10-year loan standing at 2.86% against 2.80% at the close, which benefited the banking sector .

Societe Generale gained 4.27% to 22.61 euros, BNP Paribas 3.69% to 56.48 euros and Crédit Agricole 2.49% to 10.95 euros. The insurer Axa took 1.79% to 27.26 euros.

Renault in the lead

The French automaker closed the session up 5.03% at 44.70 euros, topping the CAC 40, despite a complaint from nearly 2,000 car owners about faulty engines. The French automotive supplier Valeo took 4.40% to 18.99 euros and its competitor Faurecia 7.94% to 21.27 euros.

© 2023 AFP

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