The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed up 0.62% on Wednesday, notably driven by LVMH, despite a more uncertain macroeconomic environment, with investors seeing the prospect of a first rate cut from the American central bank fading away.
The flagship CAC 40 index finished at 7,981.51 points. On Tuesday, it lost 1.40% to finish at 7,932.61 points, the lowest since February 29.
“The market is in a more comfortable situation than the day before” while “the start of the week was mainly marked by expectations about the possible loosening of monetary policy (Editor’s note: rate cut) of the American central bank”, comments Jeanne Asseraf -Bitton, head of research and strategy at BFT IM.
The recent publication of several macroeconomic indicators demonstrated the resilience of the world’s leading economic power, despite the high levels of key rates from the Fed, which is trying to bring inflation back to the target of 2%.
On Tuesday, Fed President Jerome Powell indicated that “if high inflation persists” in the United States, the monetary institution “could maintain the current level (rates) as long as necessary”, during a table round, in Washington.
The yield on ten-year Treasury bills stood at 4.62%, compared to 4.67% the day before at closing.
The market is also paying attention to the start of the corporate results season.
The market wants to know if they still have the capacity to “pass on cost increases in price increases,” explains Ms. Asseraf-Bitton.
LVMH in line with forecasts
LVMH, number one in luxury in the world and second largest stock market valuation in Europe, announced on Tuesday sales falling in the first quarter by 2% year-on-year, to 20.7 billion euros. However, these results are in line with analysts’ forecasts. The stock increased by 2.84% to 804.00 euros.
Vinci arrives in Edinburgh
The French construction and infrastructure giant Vinci advanced 0.31% to 112.30 euros after announcing an agreement to buy 50.01% of the shares of Edinburgh airport “for a price of 1.27 billion of pounds sterling”, or almost 1.5 billion euros.
Casino under the eye of Fitch
The rating agency Fitch raised Casino’s long-term debt rating from “RD” to “CCC+” on Tuesday, explaining that it had taken this decision following “the finalization of the restructuring” of the mass distribution group, enacted at the end of March.
The action gained 2.47% to 3 cents.
© 2024 AFP
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