The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange ended with a small increase of 0.48% on Friday, as perky to start the month of December as it was to end November, and helped by expectations that interest rates will fall soon.
The flagship CAC 40 index advanced 35.38 points, to 7,346.15 points. Over the week, it gained 0.73%, its third consecutive weekly gain.
After a thunderous month of November (+6.17%, the best monthly progression since January for the CAC40), investors woke up on the right foot and appreciated the final figures of the Eurozone PMI index, which showed that manufacturing activity contracted in November but less than the initial estimate.
In the United States, manufacturing activity maintained a negative trend in November, following a thirteenth month of contraction in a row and remaining below expectations, according to data published Friday by the professional federation ISM.
“The economic situation is less buoyant than one might believe by looking at the stock indices,” notes Valérie Rizk, emphasizing that there “are signs of slowdown” in growth in the United States.
“The effects of monetary tightening are being felt and will increase,” she believes.
The main reason for the gains recorded in November is, according to Ms. Rizk, “the return with fanfare of the anticipation of the end of the monetary tightening cycle, the markets anticipate that there will be cuts in key interest rates fairly quickly “central banks.
A scenario which is perhaps going “a little quickly” according to her, because the “observed disinflation” is mainly linked “to the sharp drop in energy prices”.
The President of the American central bank (Fed), Jerome Powell, also warned the markets on Friday that it is too early to anticipate a rate cut, and that the Fed even stands ready to raise them further if necessary in the face of to inflation.
On the bond market, the interest rate on the ten-year French government bond fell to 2.92%, compared to 3.02% at Thursday’s close.
The new production cuts decided by oil-producing countries and their OPEC+ allies were not enough on Friday to raise oil prices, with the barrel of Brent still hovering around $80. Over the week, it gained 0.9%.
The action of the French electronic payments specialist Worldline gained 5.87% to 15.07 euros on Friday, supported by market rumors according to which the banking group Crédit Agricole would study a stake in the capital of Worldline, reported financial information agency Bloomberg.
Pierre et Vacances in loss
The European number one in leisure residences Pierre et Vacances suffered a net loss of 20.06 million euros in 2022/2023, weighed down by exceptional charges linked to the sale of Senioriales senior residences, indicates a press release on Friday. The action gained 5.52% to 1.45 euros.
Appolo flies in concert with Air France-KLM
The airline Air France-KLM and Apollo Global Management have agreed that the fund will increase its investment in a new subsidiary backed by the airline group’s Flying Blue loyalty program to 1.5 billion euros, the latter announced on Thursday.
The action gained 2.99% to 11.98 euros.
Strike at Casino
The mass distribution brands Les Mousquetaires/Intermarché and Auchan confirmed on Thursday evening that they were interested in taking over all Casino supermarkets and hypermarkets with their employees. The five Casino union organizations, for their part, announced the filing of a strike notice as of December 5.
The action lost 8.31% to 0.60 euros.