The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 0.54% on Friday, relieved by the slowdown in the job market in the United States, considered a good omen for a possible rate cut from the American central bank, hoped for in September.
The flagship CAC 40 index advanced 42.92 points to 7,957.57 points. On Thursday, it fell 0.88% to end at 7,914.65 points, which was its lowest close since February 22. Over the week, the CAC 40 posted a loss of 1.62%.
Investors were reassured by April’s job creation in the United States, which slowed sharply, to 175,000 compared to 315,000 in March, the unemployment rate having increased only slightly, to 3.9% in April. against 3.8% the previous month.
The signals of weakening of the American economy are welcome for the markets, which hope that the American central bank (Fed) carries out a possible first reduction in key rates in September, according to market estimates.
At the end of its last monetary policy meeting on Wednesday, the Federal Reserve kept its rates in the range of 5.25 to 5.50%, their highest level in more than 20 years, in order to bring inflation back to 2%.
Its president Jerome Powell also recalled that he had a dual mandate, “to bring inflation back to the target objective, but also to maintain growth and the job market in good conditions”, comments Isabelle Vic-Philippe, bond manager at Amundi.
The deterioration of the American job market led to a clear easing of bond rates immediately after the publication of the data, before rising slightly. The interest rate on the 10-year French government bond stood at around 2.97%, compared to 3.02% at the close on Thursday.
About-face for Société Générale
After a sharp start to the session for Société Générale, the stock turned around to end down 5.18% at 24.46 euros, after a conference with financial analysts led by Managing Director Slawomir Krupa.
The impression of vagueness around certain financial objectives and a management team perceived as “on the defensive” weighed on the stock, explains an analyst contacted by AFP.
Its subsidiary ALD, on the broader SBF 120 index, gained 7.20% to 6.85 euros.
Elsewhere on the Parisian stock market, Crédit Agricole gained 1.10% to 14.77 euros. Philippe Brassac, managing director, declared that the bank should achieve its objective of being “above 6 billion” in net profit from 2024 and no longer just in 2025.
In finance, the insurer Axa dropped 1.38% to 31.43 euros after its results.
Legrand does less well than expected
The electrical equipment manufacturer Legrand announced on Friday declining results in the 1st quarter, with a net profit of 276 million euros down 16.5%, against a backdrop of a depressed global construction market.
The results were a little worse than expected, and the stock fell 2.40% to 95.34 euros.
© 2024 AFP
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