The Paris Bourse ended sharply higher on Thursday, despite losses of nearly 2% in the middle of the afternoon after inflation figures in the United States were higher than expected.
The star CAC 40 index advanced 60.72 points to 5,879.19 points, ending a streak of six consecutive sessions.
Investors were feverishly awaiting data on inflation in September in the United States, but the publication did not meet their hopes, once again, underlines Yohan Salleron, equity manager in the euro zone at Mandarine Gestion.
The reaction at first was quite violent, he describes. The publication plunged the CAC 40, yet up in the middle of the session, to 5,700 points just before 4:00 p.m., close to its lowest for the year, before the index made an equally spectacular rise.
Mr. Salleron attributes this movement to good account redemptions by investors who bet on a decline.
Inflation was persistent in September in the United States, despite the strong measures already taken to slow it down. Prices rose 8.2% in September over one year, according to the CPI index, which refers. This represents a very slight slowdown since, in August, the rise in prices over one year had been 8.3%.
But it is above all the rise in prices over just one month that shows that inflation is tenacious: it accelerated again, with +0.4% between August and September, against +0.1% between July and August. And that’s more than the 0.3% increase that was expected by analysts.
While investors tell themselves that the inflection point should arrive on the pace of rising prices, the good news is slow, explains Mr. Salleron.
If the macro-economic environment is gloomy, market players are turning to corporate results hoping for good news, if the groups give more visibility on 2023 or show their resistance in this difficult context.
The two-speed CAC
CAC 40 companies are clearly divided according to their sector and their characteristics for investors.
So-called growth stocks, which are more sensitive to financing conditions and the valuation of their profits over the long term, have fallen sharply. This is the case of luxury, which had carried the CAC on Wednesday after the results of LMVH. The world number 1 in luxury lost 0.71% to 617.50 euros, Herms 2.30% to 1,254.50 euros, Kering 0.51% to 443.20 euros.
Professionals: cheapest online deals for limit your bank charges
Pernod Ricard also fell by 2.54% to 174.55 euros, and technology stocks were also struggling, such as Dassault Systmes (-0.28% to 33.43 euros) or Teleperformance (+0.16% to 253.30 euros).
Conversely, more cyclical stocks, less sensitive to central bank policies, pulled out of the game: Unibail-Rodamnco-Westfield gained 2.70% to 42.04 euros, Veolia 3.14% to 19.73 euros, Stellantis of 2.43% 12.49 euros.
The context of rising rates also favored banks, such as Socit Generale (+3.89% 22.06 euros) or BNP Paribas (+2.59% 43.44 euros).
Aviation flies to good prospects
The good prospects for the coming months prepared by airlines in the United States (Delta Air Lines) or in the United Kingdom (IAG) have carried the entire sector in France: Safran took 4.85% 102.04 euros, Airbus 3 .91% 96.90 euros, Air-France-KLM 5.96% 1.39 euros.