The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed down 0.27% on Tuesday after its gains accumulated last week, and digesting disappointing Chinese macroeconomic news, intended to stimulate the economic recovery of the second world power.
The star CAC 40 index fell 19.88 points, ending at 7,294.17 points. The day before, he had dropped 1.01% ending at 7,314.05 points.
“Expectations of a strong and sustained post-Covid rebound early in the year have given way to fears that the Chinese economy will slow sharply,” comments Michael Hewson of CMC Markets.
To boost struggling growth in the world’s second-largest economy, China’s central bank cut two benchmark rates on Tuesday, following several similar moves in recent weeks.
Highly followed by the markets, these two rates are now at their historic lows. They were last reduced in August 2022.
But this decision is judged against the major economies in the world which raise rates to curb inflation.
And “this concern about the economic outlook has today led to a drop” in the CAC 40 in particular, weighed down “by sectors exposed to China such as luxury”.
LVMH ended down 0.87% to 846 euros, Hermès dropped 0.53% to 1,950.20 euros and Kering 0.64% to 515.50 euros.
Renault brings up the rear
The board of directors of the French car manufacturer Renault on Monday entrusted its managing director Luca de Meo with the reins of its new electric subsidiary, Ampere.
The future CEO of Ampere will have to “ensure the launch of the company and the success of its IPO project, while retaining his current responsibilities as CEO of Renault”, the group said in a press release.
Renault’s share price fell 3.76% to 35.50 euros.
Airbus
Airbus (+0.41% to 132.02 euros) and the Franco-Italian manufacturer of electronic components STMicroelectronics (0.97% to 44.57 euros) announced on Tuesday a partnership to develop semiconductors for electronic systems requiring high power, in order to progress in the electrification of aircraft.
The electrification of planes could allow savings of up to 5% in fuel, said the technical director of Airbus during a press conference.
Saffron buds
Safran took 0.10% to 143.04 euros after winning its first export contract for its Patroller drone by selling four units to the Greek army as part of the modernization of its tactical drone systems, announced the group on Tuesday at the Paris Air Show.
ADP returns to pre-Covid levels
Traffic at Paris airports continued to recover in May, returning almost to its level before the Covid-19 pandemic, according to figures published on Monday. Its share price ended up 0.51% at 137.10 euros.
Neoen, the wind in its sails
The renewable energy producer closed up 4.33% at 30.38 euros after announcing that it was revising its profitability target for the 2025 financial year upwards, with an adjusted Ebitda which exceeds 700 million euros and not more “over 600 million euros” after a contract won in Australia.
© 2023 AFP
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