The Paris Stock Exchange did not benefit from the momentum given by Nvidia – 05/23/2024 at 6:17 p.m.

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

The Paris Stock Exchange ended just in the green on Thursday, the publication of activity indicators in the euro zone and the United States having tarnished the optimism linked to the better than expected results of the chip giant Nvidia.

The flagship CAC 40 index gained 0.13%, or 10.22 points to 8,102.33 points. On Wednesday, it fell 0.61%, penalized by the luxury sector.

The Parisian stock market started the session on the rise, focusing on the good results from Nvidia published on Wednesday and leaving aside the PMI activity indicators.

Private sector activity in France contracted slightly in May, after a “brief return to growth” the previous month, S&P Global and the Hamburg Commercial Bank (HCOB) indicated on Thursday. Above all, activity in services was much less dynamic than expected.

As for the euro zone, growth in private sector activity accelerated in May, and a little more than analysts anticipated, according to the Flash PMI index published Thursday by S&P Global.

Figures “rather in line with the various data” published previously and which show that the euro zone “is gradually emerging from the red zone of stagnation or recession depending on the country”, comments Valérie Rizk, economist at Hugau Gestion.

But the publication, in the afternoon, of the same indicator concerning the American economy disturbed the markets.

Growth in private sector activity in the United States in May was more sustained than expected by analysts.

“Activity in the United States is very strong, at its highest in two years,” observes Valérie Rizk.

American sovereign interest rates rose in response because the dynamism of the American economy could push the American central bank (Fed) not to reduce its key rates as soon as expected by the markets.

The interest rate on France’s ten-year loan also rose to 3.06% around 3:55 p.m. GMT, compared to 3.01% on Wednesday.

Since the start of the year, markets have examined all macroeconomic indicators through the prism of central bank rate cut expectations.

But given the economic upheavals since the Covid crisis and the uncertainty linked to geopolitics, the economic situation is currently very difficult to predict and “investors tend to over-react to each new key data”, explains Valérie Rizk .

Soitec slowed down

Profits of semiconductor manufacturer Soitec fell 23% during its staggered 2023-2024 financial year, to 178 million euros. It estimates that its 2024-2025 turnover will remain stable at constant scope and exchange rates but still notes uncertainties due to the “inventory correction” of essential radio frequency parts for smartphones.

The stock lost 3.32% to 110.60 euros.

Lagardère negotiates Paris Match

The Lagardère group (-0.23% to 21.30 euros), in the fold of Vincent Bolloré, announced a memorandum of understanding with a view to the sale of its magazine Paris Match to the luxury giant LVMH (+0.12 % to 752.80 euros), on “the basis of an enterprise value” of 120 million euros.

Big contract for Euroapi

The French manufacturer of active pharmaceutical ingredients Euroapi climbed 9.97% to 3.57 euros, after announcing a five-year contract, estimated between “130 and 150 million euros”, to supply veterinary products to a company worldwide in animal health.

Since the start of the year, the stock has lost even more than 37%.

Euronext CAC40

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