The Paris Stock Exchange was stable (-0.05%) Friday at the start of the session, reluctant to move forward the day after a stronger than expected increase in the key rates of the European Central Bank (ECB).
The star CAC 40 index lost 2.86 points to 6,198.47 points, 10 a.m. (0800 GMT). Thursday, he had taken note of the sharp rise in the key rates of the ECB and progress of 0.27%.
Since the start of the week, the Paris market has so far gained 2.69%, its third week in a row on the rise.
The ECB raised Thursday its three main rates by half a percentage point, against a quarter of a point originally planned. She also provided details on the new instrument intended to protect the most fragile states against speculative attacks on their debt.
But the activation of this tool will be subject to economic conditions.
Xavier Chapard, member of the research and strategy team at Banque Postale AM, believes that the ECB will be reluctant to use this program without significant financial stress, given the absence of precise and binding criteria on the eligibility and triggering of this new program.
Thus, in the midst of the political crisis in Italy, the declarations of the President of the ECB, Christine Lagarde, did not reassure the market.
After the resignation of head of government Mario Draghi, let go by three parties in his coalition, Italian President Sergio Mattarella decided on Thursday evening to dissolve Parliament, prompting early elections to be held on 25 September.
For the future, the ECB indicates that it will continue to raise its rates but without committing to the timing and size of future increases, adds the expert from La Banque Postale AM.
On the bond market, the borrowing rates of European states eased significantly by 10 to 15 basis points on Friday morning.
In France, the Minister of the Economy has unveiled its stability program in which the government plans to reduce state and local government spending during the five-year term and to return the public deficit to below 3% in 2027.
In the short term, the government expects a slowdown in the economy next year, with growth expected at 1.4%, after 2.5% in 2022.
An interim indicator from S&P Global revealed on Friday that the French economy slowed markedly in July as private sector activity virtually stagnated.
Concerns over Ubisoft
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French video game publisher Ubisoft announced a 9.8% drop in sales in the first quarter of its 2022-2023 financial year, as well as a postponement to 2023-24 of the release of the highly anticipated game Avatar, drawn from James Cameron’s film. Its action lost 2.62% 40.57 euros.
Maurel & Prom doubles its revenue
The French hydrocarbon producer Maurel & Prom saw its revenues almost double in the first half, under the effect of the increase in its production, but also and above all in oil prices. The title took 1.76% 4.34 euros.
Gecina raises its objective
The real estate company specializing in office real estate Gecina (+1.67% to 94.10 euros) has announced that it is revising its results targets for the year 2022 upwards, despite a slight decline in the first quarter.
Compagnie des Alpes confident
Compagnie des Alpes (+1.03% to 15.68 euros) saw its turnover increase by 22% in the third quarter of its delayed financial year compared to the same period before the Covid-19 pandemic and confirms that it is waiting for the its entire 2021-2022 financial year higher sales than before the pandemic.