The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange rebounded 1.30% Monday morning, trying to make up for Friday’s losses in a still uncertain context regarding the evolution of monetary policies and inflation.
The star CAC 40 index advanced 94.23 points to 7,280.83 points around 10 a.m. The Parisian rating had ended the week with a decline of 1.78% on Friday and a drop of 2.18% over five days, its worst weekly performance since mid-December.
This correction was caused by the publication of a rebound in PCE inflation, the indicator favored by the American central bank, the Fed.
Headline inflation (+5.4%) and core inflation (+4.7%), which excludes the more volatile energy and food prices, both accelerated in January on one year, when a decline was expected. December figures were also revised upwards.
Sebastian Paris Horvitz, director of research at La Banque Postale AM, sees these figures as signs of a “more difficult” framework for 2023 than central banks “have envisaged so far” with the risk of being forced to be “tougher” than expected.
He points out that “growth, driven by demand that is holding up much better than expected, risks fueling existing inflationary pressures.” Thus, “calibrating the right dosage of restriction of monetary conditions will not be easy” for the American Federal Reserve.
These figures indeed compromise the scenario of a pause in rate hikes by the US Federal Reserve (Fed), especially since US household consumption and the job market are not weakening.
In Europe, investors will take notice on Monday of consumer and business confidence in the euro zone in February.
On Tuesday, inflation in France in February is on the agenda, before that of Germany on Wednesday and that of the euro zone on Thursday.
Economic activity indicators for various European countries and the United States will also be released this week.
Thales in shape
The defense and technology group Thales (+0.86% to 134.70 euros) plans to recruit more than 12,000 employees worldwide in 2023, including 4,000 job creations, driven by the dynamism of the aerospace, defense and security and digital identity.
Big check at Stellantis
The remuneration of Stellantis boss Carlos Tavares could eventually reach 23.5 million euros for the year 2022, boosted by the exceptional results of the automotive group. Stellantis France will also change directors.
The title took 0.79% to 16.57 euros.
SES picks up
The action of the Luxembourg satellite operator SES fell 7.65% to 6.69 euros after the publication of results below consensus expectations of analysts polled by Bloomberg. SES had a turnover of 1.9 billion euros in 2022 and a net loss of 34 million euros, compared to a profit of 453 million euros in 2021.
© 2023 AFP
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