The Paris Stock Exchange fell 0.20% in early trading on Monday, after the announcement of a further deterioration in economic activity in October in France according to the PMI index and after achieving its best score last week weekly for seven months.
Around 10:25 a.m. Monday, the flagship CAC 40 index lost 14.13 points, 7,033.16 points. This drop follows the sharp increase (+3.7%) recorded last week, the Paris Stock Exchange having then signed its best weekly performance in seven months.
Main information from this Monday, the second publication of PMI activity indicators for October painted an even more deteriorated economic picture in France than the initial version.
At 44.6, the indicator for France has been revised down significantly compared to the first estimate (45.3). A figure below 50 signals a contraction in economic activity.
In September, this indicator stood at 44.1, its lowest level in 34 months, and it therefore only recovered very slightly in October, noted the S&P Global firm and the Hamburg Commercial Bank (HCOB ), in a press release.
In Germany, industrial orders fell slightly in September, after a rebound in August, continuing their volatile series within the struggling leading European economy, according to figures published Monday by the German statistics institute Destatis.
This moribund economic context also gives investors hope. They hope that the deterioration of economic conditions will push central banks to lower their interest rates in the coming weeks.
We could start seeing rate cuts as early as the first quarter of next year from the European Central Bank, says CMC Markets analyst Michael Hewson.
Vivendi at war with Telecom Italia
The French media giant Vivendi (-0.44% to 8.62 euros) announced on Sunday its intention to use all legal means at its disposal to contest the decision of the board of directors of Telecom Italia to sell its fixed network to American investment fund KKR.
Orpea lowers its forecasts
The group of private nursing homes Orpea (-3.20% to 1.01 euros), engaged in a procedure to regain financial balance after months of tumult, published on Monday a turnover up 11.1% in third quarter (1.3 billion euros), but postponed its recovery for one year.
Orpea announced that it was targeting an operating profit at the low end of the range announced in June. The group has postponed its objective of recovering operational and financial performance by one year, from 2025 to 2026.
Teleperformance wants to buy Majorel
The global call center giant Teleperformance (-1.66% to 121.70 euros), which will publish its results after the close of trading, announced the finalization of its purchase offer for the company specializing in customer experience and Majorel business process outsourcing services.
LVMH view
Thélios, the eyewear entity of the LVMH group (-0.64% to 698.30 euros), has signed an agreement for the purchase of Barton Perreira, an American eyewear manufacturer popular with film and music stars.