The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.99% on Tuesday and posted a negative monthly balance sheet for the first time since October, at the end of a session dense with mixed corporate results and macroeconomic indicators.
The flagship CAC 40 index fell by 80.22 points to 7,984.93 points, further widening its losses at the end of the session, driven by technical factors due to the end of April.
In April, the CAC 40 posted a negative monthly balance sheet (-2.69%).
In the macroeconomic chapter, in the euro zone, GDP is up 0.3% compared to the previous quarter, more than expected, while inflation remained stable at 2.4% year-on-year in April, announced Tuesday Eurostat.
“This shows that the hypothesis of a stabilization or even a revival of activity for the euro zone is being realized,” comments Mabrouk Chetouane, head of market strategy at Natixis IM.
These data further reassure the market in the scenario of a first rate cut by the European Central Bank (ECB) in June.
However, the Paris stock market fell into negative territory at the end of the session, after the publication of a quarterly index of the cost of employment in the United States that was stronger than expected. At +1.2%, the cost of employment in the first quarter accelerated at the fastest pace in a year and a half.
When these costs increase, “this means less margin for companies”, which could thus pass it on to their selling prices”, explains Mabrouk Chetouane.
However, “the fear for central banks” is that these cost increases could “be found in underlying inflation”, which excludes energy and food prices.
It is this inflation that the American Federal Reserve (Fed) hopes to bring back to the target objective of 2%. The powerful American monetary institution begins a two-day meeting on Tuesday after which it will communicate on its monetary policy.
The Fed has maintained its key rates since July between 5.25 and 5.50%, their highest level since the early 2000s.
A few weeks ago, the markets were counting on a first drop in June, but they are now banking on September, or even November, according to the CME Group estimate.
On the bond market, rates on ten-year US Treasury bills climbed to 4.66% compared to 4.61% at the close on Monday. French rates for the same maturity were at 3.05% compared to 3.00% the day before.
Stellantis had its worst session
The automobile manufacturer Stellantis announced a turnover down 12% year-on-year in the first quarter, posting a second consecutive quarter of decline.
Its sales were weaker than expected and the group must manage a high level of inventory, commented analyst Tom Narayan of RBC Capital Markets.
Stellantis shares fell 10.04% to 20.88 euros, its worst performance in one session since the start of its trading in January 2021.
Elsewhere on the stock market, Renault dropped 5.52% to 46.74 euros.
Lagardère without Lagardère
Arnaud Lagardère, director of the group of the same name, abandoned his executive mandates on Tuesday, including that of CEO, after being indicted as part of investigations into the financing of personal expenses by his companies, the company announced.
The Lagardère group’s share gained 4.21% to 21.05 euros while its parent company Vivendi lost 0.21% to 9.57 euros.
SES falls
The European satellite telecommunications operator SES has announced the acquisition of the entirety of its American rival Intelsat for an amount of 3.1 billion dollars (2.8 billion euros).
Its action dropped 7.84% to 4.56 euros.
© 2024 AFP
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