The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Bourse ended Friday up slightly by 0.51%, after a lackluster session, despite good European PMI indicators, investors still fearing recession and rate hikes.
The CAC 40 finished at 7,577.00 points, up 38.29 points. Over the week, the French market has gained 0.76% and gained 17% since the start of the year, more than its German equivalent, the Dax (+14.1%), and the European Euro Stoxx 50 index ( +16.2%).
Investors remain skeptical and cautious about the risk of recession, despite the publication on Friday of good European and French PMI indicators.
In the euro zone, economic growth in the private sector accelerated in April and the index reached its highest level for eleven months, the dynamism of services offsetting a decline in the manufacturing sector.
However, “who says growth, says potentially more inflation”, which could lead the European Central Bank (ECB) to “continue to increase its rates” in the face of “more persistent” inflation in Europe than in the United States , explains Benedicte Kukla, of CA Indosuez Gestion.
Especially since the “mixed character” of corporate results “didn’t really give impetus to the market”, according to Sebastian Paris Horvitz, director of research at La Banque Postale AM.
The French economy, for its part, recorded “its strongest expansion for almost a year”, according to the index published by the agency S&P Global.
Benedicte Kukla underlined “the extent of the services”, which shows “a post-Covid momentum” still intact.
At the same time, however, “the contraction in the manufacturing industry that began in mid-2022 continued during the month”, notes S&P Global. The manufacturing index was disturbed by the strikes against the pension reform.
Hermès jumps the 2,000 mark
Luxury remained sought after and Hermès shares were worth more than 2,000 euros for the first time in its history, after an increase of 0.37% to end at 2,003.50 euros.
The global optical giant EssilorLuxottica jumped 6.27% to 186.52 euros, the day after the publication of a sharp increase in turnover in the first quarter and higher than analysts’ forecasts.
L’Oréal also profited (+3.04% to 442.60 euros) and LVMH ended at 901.10 euros (+0.51%).
Lead in the wing of ArcelorMittal
The steelmaker ArcelorMittal dropped 3.83% in the wake of the sector, penalized by the fall in the price of a tonne of iron, which closed Friday at 117.41 dollars in Singapore after having touched, at 116.50 dollars per tonne, its lowest since early January.
According to CBA analysts, prices continue to “struggle to fall permanently below the 120 dollars per ton mark”.
© 2023 AFP
Did you like this article ? Share it with your friends with the buttons below.
