The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange rose slightly by 0.17% on Wednesday, trying to maintain a positive mood and an upward trend in a context of expectations of interest rate cuts from investors.
The flagship CAC 40 index gained 12.55 points to 7,587.22 points around 9:50 a.m. On Tuesday, the Parisian stock market experienced a calm session (+0.08%) and low trading volumes, signs of the approach of the end-of-year holidays.
In New York, the indices had gained around 0.6%, the Dow Jones reached a record for the fifth time in a row and the S&P 500 is now only less than twenty points below its last historic peak, reached in January 2022.
The rise in stock markets in recent sessions is supported by the fall in bond interest rates after the president of the American central bank indicated that its members had discussed a timetable for cuts in key interest rates.
And no matter if, since the speech of the president of the Fed, other officials of the American central bank have tried to temper the optimism of the markets, “investors interpret all the statements of the members of the Fed as signs of a rapid decline in interest rates,” comments Andreas Lipkow, independent analyst.
For analysts at Natixis CIB Research, “there is a risk of correction if central banks delay lowering their key rates, which will depend on the evolution of the speed at which inflation falls.”
In this context, investors will particularly scrutinize Friday’s publication of the PCE inflation index for November, the Fed’s preferred barometer for price rises.
On the bond market, sovereign interest rates remain on a downward trend. The yield on the ten-year French government bond stood at 2.49% compared to 2.52% at Tuesday’s close.
On the European side, inflation markedly stalled in the United Kingdom in November year-on-year, at 3.9%, the lowest rate since September 2021.
Orpea taken over by Caisse des Dépôts
The group led by the Caisse des Dépôts announced on Tuesday that it had taken control of Orpea, as part of the procedure which should help the group of private nursing homes to regain financial balance, almost two years after the scandal arising from practices of its former management.
Orpea shares have lost 96% of their value since the start of the year and are now worth only two euro cents.
© 2023 AFP
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