The Paris Stock Exchange was stable (+0.02%) in the first trades on Tuesday, the trend remaining gloomy with investors’ fear of still strong speeches from central bankers against inflation.
After opening lower, the flagship CAC 40 index advanced 1.76 points to 7,277.90 points around 9:30 a.m. The day before it had lost 1.39%.
Investors are cautious before the start of the meeting of the American Central Bank, which is expected to reiterate that its fight against inflation is far from over, and may still require key rate increases. The markets expect a status quo on Wednesday, but are hesitant about future increases between now and the end of the year.
“This session promises to be a long wait for the press conference” of Fed President Jerome Powell, expected even on Wednesday, at the end of the meeting, describes Christian Parisot for the broker Aurel BGC.
Few economic indicators are expected until then, apart from real estate data in the United States, as well as the final estimate of inflation in the euro zone in August.
Unlike the European Central Bank which eased off last week in the face of the recession threatening the euro zone, which allowed stock prices to move forward, the American Central Bank can still benefit from the good resistance of the the American economy to raise its rates again.
Especially since inflationary pressures have not disappeared, and a new front has even returned with the rise in oil prices: the barrel of Brent exceeded 95 dollars per barrel overnight, the highest since November.
In addition to the pressure on inflation, the price of raw materials also risks penalizing growth in 2024 and 2025 according to the Banque de France, which revised its forecasts downwards for the next two years on Monday. But at the same time it also raised its growth expectations for 2023, from 0.7% to 0.9%.
Additional agreement for Casino
The French distributor Casino announced on Monday that it had reached an agreement in principle with a new group of creditors who were not affected by the first agreement announced in July relating to the restructuring of its colossal debt, which amounted to 6.4 billion euros at the end of 2022. The action rose 7.20% to 1.83 euros, but fell 1% over the week.
SMCP undermined by the economic situation
The textile group SMCP, parent company of the Sandro, Maje, Claudie Pierlot and Fursac brands, announced on Monday that it was lowering its forecasts for 2023, facing “the slowdown in growth in Europe” in an inflationary environment and the slower-than-expected recovery in China .
The action plunged 24.91% to 3.97 euros.
Arverne goes public
The specialist in the production of geothermal energy and the extraction of Lithium Arverne Group took its first steps on the Paris Stock Exchange on Tuesday, raising more than 150 million euros by merging with a Spac, a company without commercial activity but specially formed to raise funds by going public with a view to acquiring a target company. The action variation was not yet available.
Sparkling colas
The Colas company rose 52% to reach 173 euros, almost the price offered Monday by its parent company Bouygues to buy back the last shares of capital that it does not hold in order to withdraw the title from the Stock Exchange.
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