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 should repeat that its fight against inflation is far from over, and may still require increases in key rates. 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 by 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 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 downward on Monday for the next two years. 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 sap by the situation
The SMCP textile group, parent company of the Sandro, Maje, Claudie Pierlot and Fursac brands, announced on Monday that it was lowering its forecasts for 2023, in the face of slowing growth in Europe in an inflationary environment and a slower-than-expected recovery in China.
The stock 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 constituted to raise funds by going public with a view to acquiring a target company. The action variation was not yet available.
colas
The Colas company rose by 52% to reach 173 euros, almost the price offered on 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.