The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed slightly higher on Wednesday, supported by several macroeconomic publications deemed “encouraging” which led to a downward movement in European bond rates.
The flagship CAC 40 index gained 0.12%, or 8.76 points to 7,583.43 points. On Tuesday, the Parisian stock market experienced a calm session (+0.08%) and low trading volumes, signs of the approach of the end-of-year holidays.
“The very slight increase in the CAC 40 is supported by good macroeconomic figures in England, Germany and the United States,” comments Harry Wolhandler, director of equity management at Meeschaert AM.
In Germany, wholesale prices slowed more in November than analysts expected.
Inflation in the United Kingdom slowed to 3.9% in November, year-on-year, and the pace of price increases is the weakest in more than two years.
Finally, in the United States, consumer confidence improved more than expected in December, with households showing more optimism about the health of the economy and employment. And on the housing side, resales of apartments and houses in the United States increased in November, for the first time since May, driven by a drop in interest rates.
“All these figures corroborate a favorable economic scenario, namely a drop in inflation without signs of recession in the United States”, the world’s leading economic power, underlines Harry Wolhandler.
These “encouraging” data have “caused the German 10-year rate to fall below 2% and the French below 2.5%,” he added.
In detail, around 5:50 p.m., the ten-year German bond rate fell to 1.97% compared to 2.01% on Tuesday. The French at the same maturity moved at 2.48%, the lowest since January.
Eurazeo sells Humens
The investment company Eurazeo (+0.69% to 73.05 euros) announced Tuesday the sale of its stake in the Humens group, specializing in mineral chemicals, to Leto Partners, a French investment company “dedicated to the challenges decarbonization”.
Orpea taken over by Caisse des Dépôts
The group led by the Caisse des Dépôts announced on Tuesday that it had taken control of Orpea, as part of the procedure which should help the group of private nursing homes to regain financial balance, almost two years after the scandal arising from practices of its former management.
Orpea shares have lost 96% of their value since the start of the year and are now worth only two euro cents.
© 2023 AFP
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