The Paris Stock Exchange opened up 0.40% and continued its gains from the day before, driven by the fall in inflation in the United States, but also in Europe, reassuring investors about the trajectory of the banks’ monetary policies. power stations.
The flagship CAC 40 index gained 0.61%, or from 44.01 points to 7,229.69 points around 10:15 a.m. On Tuesday, it closed up 1.39% to finish at 7,185.68 points, the highest since the end of September.
All it took was a weak signal indicating a slightly more marked decline in underlying inflation in the United States over the month of October for risk appetite to rebound, Natixis analysts comment.
Inflation slowed in October in the United States, 3.2% year-on-year, compared to 3.7% in September and so-called core inflation, which excludes volatile food and energy prices. , is at its lowest in more than two years, 4.0% over one year.
This publication reinforced expectations of a rate cut in 2024 for the Federal Reserve (Fed) and the European Central Bank (ECB), Natixis analysts point out.
To contain rising prices, the Fed has raised interest rates 11 times since March 2022, bringing them to their highest level in 22 years, in a range of 5.25 to 5.50%.
The ECB left its rates unchanged in October, after ten increases in a row to bring the main one to the historically high level of 4%.
Markets were also relieved by falling inflation in France, the United Kingdom and Italy.
In France, inflation fell significantly in October, 4% over one year compared to 4.9% in September. In the United Kingdom, it fell sharply in October, 4.6% over one year compared to 6.7% the previous month. In Italy, inflation was revised downward in October, to 1.7% year-on-year.
Alstom, emergency braking
Alstom, weighed down by commercial and financial difficulties, plunged 11.47% to 12.55 euros around 10:10 a.m., after announcing on Wednesday a cost reduction plan including the elimination of 1,500 jobs or 10% of commercial and administrative functions.
The railway group has set itself the objective of reducing its debt by 2 billion euros by March 2025, via an asset sale program and possibly, depending on market conditions, a capital increase, according to a press release. .
The world’s second largest railway manufacturer has been going through a crisis since announcing to investors on October 4 that it was excessively consuming cash. Its free cash flow plunged into the red during the first half of 2023/2024 of its fiscal year -1.1 billion euros. The next day, the stock plunged more than 37% and has not recovered since.
Renault, a promise of 20,000 euros
Renault announced on Wednesday the upcoming launch of a new electric car costing less than 20,000 euros, excluding subsidies, to democratize battery cars and face Chinese and American competition. On the stock market, its action gained 1.59% to 35.55 euros.
Luxury worn by China
Luxury, whose activity is partly linked to China, was on the rise, driven by macroeconomic data from the world’s second largest economic power published on Tuesday.
Retail sales, a key indicator of household consumption, experienced their largest increase in October since May, according to the National Bureau of Statistics.
Industrial production increased by 4.6%, after +4.5% in September, and the unemployment rate in urban areas remained stable at 5.0%.
LVMH gained 2.48% 724.40 euros, Kering 2.74% 419.45 euros, Herms 1.69% 1,942.40 euros.