The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange finished close to balance on Tuesday, held back by a rise in interest rates on the bond market, fueled by stronger than expected data on American consumption.
The flagship CAC 40 index advanced 0.11%, or 7.51 points, to 7,029.70 points. On Monday, it ended slightly up 0.27%, at 7,022.19 points.
For Samy Chaar, chief economist at Lombard Odier, the day took place “in two parts” with the first half of the session focusing on “instability in the Middle East and the uncertainties that this can cause”, particularly concerning the oil supply.
Then, the markets focused on the American economy and interest rates after the publication of September retail sales in the United States.
The market tensed up upon the publication of this indicator, which showed an increase of 0.7% over one month in September, well above the 0.3% predicted by economists. Additionally, the previous two months, July and August, were revised upwards.
These figures demonstrate “the robustness and resilience of the American consumer”, underlines Samy Chaar. He adds that “if the American consumer can cause or recreate a form of economic overheating in the United States, there is the risk that this will put pressure on the Federal Reserve”, the American central bank.
Interest rates on government loans rose significantly on the bond market following this publication. Those of American debts at two and ten years are approaching their levels at the end of September, which had not been seen for 17 and 16 years respectively.
The yield on ten-year French debt stood at 3.50% compared to 3.40% at Monday’s close.
On the geopolitical front, markets welcomed the announcement of a visit by US President Joe Biden to Israel on Wednesday.
While Israel is preparing for a ground offensive to “annihilate” the Palestinian Islamist movement Hamas, diplomatic activity continued on Tuesday to try to prevent the war, triggered on October 7 by Hamas’ bloody attack on Israeli soil, does not set the Middle East ablaze, but also to spare the trapped civilians.
Mr. Biden will also meet with the President of Egypt, the King of Jordan and the head of the Palestinian Authority in Amman, Jordan, announced US National Security Council spokesman John Kirby.
Edenred at the top of the CAC 40
Edenred shares, the main player in the restaurant voucher market, rose 4.11% to 55.22 euros, posting the best progression in the index after a notice from the Competition Authority published on Tuesday.
The institution judged that capping the commissions received by companies issuing meal vouchers is not “the most appropriate response” to “market failures” and on the other hand recommended “making the dematerialization” of vouchers compulsory. -restaurant, a solution announced by the government by 2026.
Wendel interested in IK Partners
The investment company Wendel (+2.98% to 76.05 euros) announced on Tuesday that it was negotiating the takeover of IK Partners and its 12 billion euros of managed assets, for 383 million euros for launch its new management activity on behalf of third parties.
ADP rises
Parisian airports continued their rise towards pre-pandemic levels in September, despite the end of the summer peak period, returning 94.6% of their passengers from the same period of 2019, their manager announced on Monday. The day after this announcement, the share price of Aéroports de Paris gained 1.42% to 107.20 euros.
© 2023 AFP
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