The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange rose 0.37% in early trading on Tuesday, despite Carrefour’s plunge, amplifying its rebound from the day before at the end of a trying week following the dissolution of the National Assembly.
The star CAC 40 index rose 27.88 points to 7,599.45 points around 9:45 a.m., after approaching 7,650 points at the opening.
On Monday, the index recovered 0.91% after recording a weekly fall of 6.23% on Friday.
The Paris Stock Exchange is moving far from its record established in mid-May (8,239.99 points at closing) unlike the American indices, the S&P 500 and the Nasdaq reached new highs on Monday.
Investors are still trying to better analyze the situation and the possible repercussions of the upcoming legislative election in France.
On Monday, “concerns eased after Marine Le Pen said she would work with President Emmanuel Macron if she wins the next election, which comforted markets and was followed by a moderate rebound in European indices and of the euro”, estimates Natixis analysts.
The European Central Bank has not shown signs of restlessness either.
“We are attentive to the proper functioning of the financial markets,” said the President of the European Central Bank (ECB) Christine Lagarde, questioned on Monday about the upheavals caused by the political crisis in France. “We continue to be attentive of course, but it is limited to that,” she then clarified.
On the bond market, the gap between French and German interest rates stabilized on Monday. On Tuesday the French rate for the 10-year loan, the benchmark maturity, fell slightly while the German equivalent remained stable.
Investors can focus all the more on political uncertainties as the markets’ agenda is otherwise quite empty.
On Tuesday, the final estimate of inflation in the euro zone in May, the business climate in Germany for June and retail sales as well as industrial production in the United States are on the program.
The Carrefour model called into question
The action of French distributor Carrefour fell 7.63% to 13.43 euros after information from the media La Lettre on a heavy fine requested by the Ministry of the Economy due to the group’s links with franchised stores.
The Letter revealed that the Ministry of the Economy recommends that the courts order Carrefour to review its contractual relationship with its franchisees, deemed too unbalanced, and recommends a fine of 200 million euros. The group challenged Bercy’s conclusions to the AFP.
The stock even fell by almost 10% at the start of the session, reaching 13.14 euros, its lowest level since November 2020.
Atos continues its rise
The Atos company, in great difficulty, jumped another 15.38% to 1.14 euros on Tuesday, a gain of 30% in two sessions. On Friday, the State offered 700 million euros to buy its strategic activities, such as supercomputers used for nuclear deterrence, which had already pushed up the price.
Since the start of the year, the stock has still fallen by almost 84%.
© 2024 AFP
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