The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange was up on Friday, relieved by several economic indicators published during the week which confirmed the slowdown in the American economy, which leaves the market hoping for a reduction in central bank rates.
The flagship CAC 40 index gained 0.75% around 9:40 a.m., or 53.92 points to 7,222.32. On Thursday, the flagship CAC 40 index fell 0.57% to 7,168.40 points.
“The drop in the CAC 40 on Thursday is mainly explained by profit taking, but the underlying trend remains upward,” comments Christopher Dembik, investment strategy advisor at Pictet.
The sharper than expected drop in inflation in the United States caused the stock markets to rise this week. Since Monday, the CAC 40 showed an increase of more than 2.40%.
“If we completely agree that the war against rising prices has not yet been won, more and more economists are now betting on one or more rate cuts (from the Fed, Editor’s note) in 2024,” he continues.
The American monetary institution has raised its interest rates 11 times since March 2022 to control inflation, bringing them to their highest level in 22 years, in a range of 5.25 to 5.50%.
However, “after the sharp increases at the start of the week, investors could wonder if it is not time to take some profits”, which, mechanically, lowers prices, adds the analyst.
On the macroeconomic side, retail sales in October in the United Kingdom fell further in October in the United Kingdom to fall to their lowest level in volume since the 2021 confinements, weighed down in particular by a fall in fuel purchases and the difficulties budgetary measures of the British.
Economists point out that these figures are worse than expected. They expected a rebound in retail sales.
Analysts will turn their attention at 11:00 a.m. to the publication of the second estimate of inflation in October in the euro zone.
Eiffage, a EUR 4 billion contract
The construction giant will carry out the civil engineering work for the EPR2 nuclear reactors planned in Penly (Seine-Maritime), for an amount exceeding 4 billion euros, it announced on Thursday. Its stock increased by 2.86% to 89.84 euros around 9:35 a.m.
© 2023 AFP
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