The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 0.33% on Wednesday, in the wake of the jump the day before with the confirmation of the fall in inflation in the United States as in Europe in a session marked by the new fall in Alstom.
The flagship CAC 40 index advanced 23.93 points to 7,209.61 points, above 7,200 points at the close for the first time since September 21. The day before, it had gained 0.60%.
“This session validates what happened on Tuesday,” explains Philippe Cohen, manager of Kiplink Finance. Investors were enthusiastic about American inflation which stood at 3.2% over one year, compared to 3.3% expected.
“Beyond 0.1 percentage point, we still observe a significant and uninterrupted drop in inflation” for several months, “corrected for the rise in oil prices,” he explains.
The data published Wednesday in the United States, on producer prices and retail sales, also paint the picture of an economy which is heading towards a slowdown in prices, with a still limited economic downturn.
In Europe, revised inflation data in October were in line with expectations, except in Italy where they were revised downward.
Faced with the recession which is already hitting certain economies, “it is even more likely that the European Central Bank will be the first to lower its key rates”, before the American Federal Reserve, believes Mr. Cohen.
On the value side, Alstom fell 15.03% to 12.04 euros. The railway manufacturer announced on Wednesday a plan to reduce debt with the elimination of 1,500 jobs worldwide, asset sales and even a possible capital increase “depending on market conditions”. But investors are already anticipating a capital increase according to Mr. Cohen. the stock had already plunged more than 37% in October after a warning on its results. During the session, the stock plunged more than 20%, reaching its lowest level since 2005.
A car for less than 20,000 euros, and the promise of profits propelled by a sharp drop in costs: Renault is trying to attract investors before the stock market launch of its electric subsidiary, Ampere. The action gained 2.27% to 35.79 euros.
Luxury, whose activity is partly linked to China, was on the rise, driven by macroeconomic data from the world’s second largest economy published on Tuesday. Retail sales, a key indicator of household consumption, notably experienced their largest increase in October since May, according to the National Bureau of Statistics.
LVMH gained 1.71% to 719 euros, Kering 0.50% to 410.15 euros, Hermès 1.08% to 1,931 euros.
© 2023 AFP
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