The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended the week up slightly by 0.14% on Friday, after a sluggish session due to the summer holidays, showing optimism about a decline in inflation thanks to a reassuring series of American indicators.
The CAC 40 index gained 9.19 points to 6,553.86 points in a low trading volume, after gaining 0.33% the day before.
The Parisian place had its eyes riveted on the confidence of American consumers, which recovered in August due to the prospects for improvement on the front of inflation, according to the preliminary estimate published Friday by the University of Michigan.
This good news comes on top of the figures for the rise in consumer prices, which remains high but is settling in the United States (8.5% over one year in July), and those for wholesale prices, also slightly decrease.
“The CAC 40 clearly has more interest in looking at the United States,” said Andrea Tuéni, an analyst at Saxo Bank, to AFP, stressing the little impact on the markets of the rise in inflation in France. (6.1% in July over one year) announced Friday morning by INSEE.
American indicators have confirmed investors in their expectations: “inflation that could be brought under control and a peak already reached, which would suddenly allow the Fed (American central bank, editor’s note), in particular, to calm the game of its monetary policy of raising rates”, indicates Mr. Tuéni.
But market projections may not correspond to the decisions of the Fed, which has set itself the objective of regaining control of inflation, aiming for 2% per year, a far cry from current figures.
On the European side, a drop in inflation “seems difficult to envisage, energy prices being much more expensive there than in the United States” due to the Russian invasion of Ukraine, also underlines Michael Hewson, analyst at CMC Markets.
The Parisian index had a week on the rise but with a low trading volume due to the summer holidays, after a period of more intense corporate results. Next week should be part of the same dynamic, the main indicators having been digested by the markets according to analysts.
Veolia and banks in good shape
French environmental services giant Veolia gained 1.23%, after the BlackRock fund put some of its shares in the company back on the market.
BNP Paribas rose to the top of the CAC 40 (+1.77%) with Société Générale (+1.54%) and Crédit Agricole (+0.34%) in its wake.
Barclays pessimistic about the M6-TF1 merger
Among the values of the broader SBF120 index, TF1 lost 3.24% to 6.87 euros. Mr. Tuéni explains this drop by the publication of a note from Barclays, “which changes its recommendation and which is quite pessimistic about the merger with M6”.
© 2022 AFP
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