The Paris Stock Exchange gained 1.24% on Friday, its best session since the beginning of the month, a rebound that does not compensate for the heavy losses of the week, marked by profit taking on luxury goods and worries about the American debt. .
The star CAC 40 index gained 89.91 points to 7,319.18 points, the best performance since May 5. It thus breaks a series of four declines, which brought the Parisian coast to its lowest level since the end of March.
But overall the CAC 40 is experiencing its worst week since mid-March (-2.31%).
The Parisian coast hovered around the balance during the first part of the session, before accelerating from midday, then with the opening of the American markets.
It’s a technical rebound, says Lionel Melka, partner at Swann Capital. We breathe, saying to ourselves that on the story of the debt ceiling, we will find a solution, he believes.
Discussions on the US debt ceiling seem to be moving in the right direction between the White House and congressional leaders, although a vote of approval afterwards will be difficult to obtain from elected Republicans.
Discussions between the White House and the Republican opposition are productive, spokeswoman for the executive, Karine Jean-Pierre, assured Thursday, removing the prospect of a default of payment from the United States.
The market hates uncertainty. Everyone thinks it would be silly to go into a default situation, but there is always the risk that a drape, says Mr. Melka to explain the tension that has animated all the markets this week.
In addition, the report on inflation in the United States, the most awaited indicator of this week, is not necessarily going in the direction of investors because it shows that inflation persists, retains Mr. Melka.
The PCE index, the favorite of the US central bank, rose 4.4% year on year in April, against 4.2% the previous month. More worryingly, the underlying index, which excludes sectors with volatile prices such as food and energy, accelerated to 4.7%.
Spending by American households rose sharply (+0.8% in April), which is partly a reflection of the rise in prices, while their incomes also rose (+0.4%).
But this resilience in the economy also gives the Fed more leeway to raise its key rates even further.
Investors now give a probability of more than 35% to this scenario which seemed excluded to them at the beginning of the month.
As a result, interest rates in France started rising again: the rate for the 10-year loan reached 3.11%.
Casino debt on the table
When trading resumed after three days of suspension, the action of distributor Casino fell 6.43% to 6.33 euros, following the announcement of the opening of a conciliation procedure to renegotiate its large debt. At the start of the session, Casino had lost more than 10%.
The action of its parent company Rallye fell another 10.00% to 0.90 euro. Since the beginning of the year, the Casino share has lost more than a third of its value and that of Rallye around 66%.
Electrical AG at TotalEnergies
The shareholders of TotalEnergies (+1.38% 55.76 euros) largely validated the group’s climate strategy on Friday, during a general assembly held under pressure from demonstrators, massed outside, but also from the government, which are called for to turn away from fossil fuels more quickly.
Luxury rebound
Malmenes in the middle of the week, luxury stocks rose sharply on Friday: LVMH took 2.44% to 843.50 euros, the second increase in the CAC 40. Herms took 2.32% to 1,959.20 euros, Kering 1.43% to 517, 70 euros.