The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.29% on Monday, starting the week on a cautious note before several company results and the monetary policy decision of the American central bank on Wednesday evening.
The flagship CAC 40 index lost 23.09 points to 8,065.15 points. The Parisian rating increased by 0.89% on Friday and by 0.82% over the whole week.
For Thierry Claudé, manager of Kiplink France, there is “a form of wait-and-see attitude” around the next meeting of the Federal Reserve (Fed), which will end on Wednesday evening with a speech by its president, Jerome Powell.
The meeting of the American monetary institution is held shortly after the publication of the PCE index which revealed that inflation accelerated in March in the United States to reach 2.7% over one year.
However, the Fed has been maintaining its key rates at their highest in 20 years for several months, with the aim of lowering the level of inflation to the target objective of 2%.
“If we look at history, the market expected six rate cuts this year and today everyone is hoping for at least one before the American elections” in November, explains the manager.
Furthermore, after a previous week loaded with company results, publications will continue to rain in over the coming days.
Luxury in a small form
The session was notably marked by the drop in the luxury sector of the CAC 40 which comes “after their rebound the previous week”, comments Thierry Claudé, manager of Kiplink France.
LVMH, number one in luxury in the world and second largest stock market valuation in Europe, dropped 1.64% to 779.20 euros. Its competitor Hermès dropped 2.21% to 2,298.00 euros, recording the worst performance of the session on the flagship index.
Stmicroelectronics in disenchantment
The Franco-Italian manufacturer of electronic components STMicroelectronics dropped 1.33% to 38.15 euros on Monday, still suffering from the publication of its first quarter results on Thursday, during which its net profit was halved (-50. 9%). The group also revised downwards its annual outlook in terms of revenue and margin.
“There is a form of disenchantment for the group, which is notably in competition with ASML”, an equipment manufacturer in the semiconductor sector based in the Netherlands, notes Thierry Claudé.
“Its competitors published good results while STMicroelectronics experienced several quarters below expectations” of analysts, he continues.
Atos takes off
Economy Minister Bruno Le Maire announced on Sunday that he had sent the struggling French IT giant Atos a letter of intent to acquire all of the group’s sovereign activities.
The company also increased its liquidity and debt reduction needs on Monday in a new business plan and indicated that it welcomed “with satisfaction” the State’s interest in its sovereign activities.
The group saw its share price jump 19.18% to 2.27 euros. Since January 1, however, the stock has fallen by almost 68%.
© 2024 AFP
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