The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed down 0.21% on Monday, after a session in the absence of British and American investors, the market waiting for Wall Street to digest the American macroeconomic data.
The star CAC 40 index lost 15.37 points to 7,303.81 points. At the previous closing, Friday, the Parisian place had gained 89.91, to 7,319.18 points, signing its best performance since May 5.
It is a rather sluggish Whit Monday on the markets, “there is no European theme, nor any particular theme on France” which would have been likely to “particularly move” the Parisian index today, notes Alexandre Baradez, analyst at IG France.
Trading volumes for the session amounted to 1.4 billion euros, “against two to three billion usually”, underlines the analyst.
Although Wall Street is closed for Memorial Day, investors are keeping an eye on US index futures, which were hovering between +0.30% and +0.36% around 3:30 p.m. GMT. US President Joe Biden and Republican leader Kevin McCarthy reached an agreement over the weekend to raise the US public debt ceiling for two years and thus avoid a cataclysmic default.
“The market expects two things at this stage: to see if this agreement will be passed by Congress on the one hand and the second thing being that the problem of persistent inflation refers to the next decision of the American central bank (Fed ) in mid-June”, which risks raising its key rates even further, explains Alexandre Baradez.
Last Friday the PCE index, the Fed’s favorite, rose 4.4% year on year in April, against 4.2% the previous month. More worryingly, the underlying index, which excludes sectors with volatile prices such as food and energy, accelerated to 4.7%.
In Europe, on the bond market, the interest rate on German 10-year debt stood at 2.43%, against 2.53 on Friday. That of the French State with a ten-year maturity stood at 3.00% against 3.10% compared to Friday.
Values sensitive to bond rates benefited from the easing of the latter. Unibail gained 1.16% to 43.44 euros, Bouygues 0.83% to 30.49 euros, Legrand 0.20% to 88.52 euros and Vinci 0.15% to 108.52.
© 2023 AFP
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