The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 0.24% on Wednesday, after two sessions of decline, the scenario of falling inflation and maintaining growth being reinforced by the latest indicators.
The star CAC 40 index gained 17.51 points to finish at 7,267.64 points. Since Monday, it has fallen slightly (-0.34%), but this in no way changes the trend over the month (+5.55%).
“We had three good news today,” relates Charles de Riedmatten, manager for Myria AM.
In Europe, inflation in Spain and Germany has fallen, a good sign allowing further pressure to be eased on the European Central Bank. The pace of price increases in November for the euro zone is expected on Thursday.
Furthermore, in the United States, economic growth was revised upwards in the second estimate for the third quarter.
Finally, the comments of one of the governors of the American Federal Reserve, Christopher Waller, on Tuesday also supported the indices. Usually a supporter of a strict line on monetary policy, he said that the policy of the American central bank was well oriented to bring down inflation, confirming that the pause in the increase in key rates of the Fed was recorded”, according to Mr. de Riedmatten.
This state of mind allows the Parisian coast to experience its best month since January.
“The bullish rally is quite strong, the market is racing,” with the prospect of a cut in American key rates from March, considered almost 50% likely by market participants, describes the manager. Conversely, he believes “that there is no urgency to lower them, unless there is a marked deterioration” in the economic situation or in certain sectors such as real estate.
The decline in inflation observed in Spain and Germany allowed the interest rate on the French 10-year bond to fall below 3% for the first time since the beginning of September.
JP Morgan launches Stellantis
The car manufacturer Stellantis jumped 5.20% to 19.80 euros, benefiting from a positive recommendation from the American bank JP Morgan, which reviews the entire sector. Stellantis has by far the best performance in the CAC since January 1, with an increase of almost 50%. Renault gained 2.28% to 35.83 euros.
Kretinsky does not move on Casino
Possible sales of super and hypermarkets by the Casino group “would in no way affect our desire” to take control, a spokesperson for the EP group of Czech billionaire Daniel Kretinsky told AFP on Tuesday in France.
“We understand Casino’s decision to examine offers from credible players for the acquisition of a certain number of hypermarkets and supermarkets,” added this spokesperson.
The distributor’s title remained stable, at 64 cents.
Trigano rolls towards beautiful horizons
Leisure vehicles have enabled French manufacturer Trigano to post a new record net profit, despite supply difficulties and inflation in its production costs. Its action gained 0.21% to 142.10 euros and has gained more than 10% since January 1.
© 2023 AFP
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