The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange lost 0.96% on Monday, as the decline in prices deepened at the end of the session after the publication of a weaker than expected US services indicator, underlining the uncertainty around the growth in the world.
The star CAC 40 index lost 69.78 points to finish at 7,200.91 points. Last week, it fell 0.66%, despite a rebound in the last session.
The decline is sharper than for other European markets, in particular due to the weight of luxury, where the decline is significant, in the CAC 40 index.
“We must put today’s session in perspective with that of Friday”, where particularly strong job creation in the United States had carried investors, enthusiastic about the dynamism of the American economy, explains Emmanuel Auboyneau, associate manager at Amplegest.
But, “from one figure to another, the market hesitates” he continues. On Monday, investors learned that activity in services in the United States barely progressed in May, slowing sharply due to weaker demand, and disappointing analysts who saw it climb stronger than in April.
“We don’t have a clear view of growth and inflation,” continues Mr. Auboyneau.
In France, private sector activity rose slightly in May, still driven by the dynamism of the service sector which offset the sluggishness of industry, confirmed the firm S&P Global on Monday.
“The rebound in industrial production in April does not allow us to hope for an acceleration in economic growth in the second quarter,” said Charlotte de Montpellier, economist at ING.
The week promises to be rather calm on the indicators side as on the side of the interventions of members of the American Central Bank, who must remain silent before the monetary meeting of June 13 and 14.
This meeting now focuses the attention of investors, who are wondering if the monetary institution will stay the course started in early May by keeping its key interest rates stable, for the first time after more than a year of continuous increases, or whether it will make a further rise.
On the bond market, interest rates for French loans rose, in unison with the rest of Europe, after the decision by the rating agency S&P Global to maintain France’s credit rating. The interest on the 10-year loan rose to 2.91%, against 2.85% on Friday.
Values exposed to China fall
Companies exposed to China, such as the luxury and spirits sectors, finished at the bottom of the CAC 40. LVMH lost 2.03% to 814 euros, Hermès 1.96% to 1,918.80 euros, Pernod Ricard 2 .50% to 199.20 euros.
Cautious attitude
Defensive stocks, more sought after in the event of fear over growth because their income is less dependent on the economic situation, held up better: Orange gained 1.62% to 10.80 euros, Sanofi 0.37% to 95.33 euros and Carrefour 0.17% to 17.35 euros.
© 2023 AFP
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