The Paris Stock Exchange still in the green

The Paris Stock Exchange retained its positive momentum on Friday from the day before, thanks to the vote on the night of the American Congress definitively ruling out the threat of a default in payment by the United States.

The star CAC 40 index gained 0.87%, or 61.75 points, 7,199.18 points around 10:40 a.m.. The day before, the Parisian market had rebounded by 0.55%, after the adoption on Wednesday evening by a large majority of elected representatives of the House of Representatives of the text on the American debt ceiling.

The senators followed suit on Thursday night Friday, thereby ruling out the risk of a default on June 5, when the federal government would have run out of cash.

Now that the US debt ceiling saga is in the rearview mirror, attention shifts to the state of the global economy and, more significantly, to the mounting evidence of a sharp slowdown in the economy. inflation, said CMC Markets analyst Michael Hewson.

According to him, this greater than expected slowdown in inflation and signs of weak demand make the next step more difficult for central banks, which will have to decide whether to slow down or suspend their rate hikes, initiated to stem a high inflation.

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Investors’ opinions are divided on the position that the American central bank (Fed) will adopt at its next meeting on the subject in less than two weeks between a new rise of 25 basis points and a pause followed by a rise in July, says Hewson.

The publication of figures on US employment, scheduled for 2:30 p.m. (12:30 GMT) could provide an answer to this question, he believes, recalling that the figures of the main indicators have regularly exceeded forecasts in recent months.

On the French side, industrial production rebounded by 0.8% in Aprilthanks to the reduction in strikes in refineries and an increase in activity in non-automotive transport equipment, INSEE reported on Friday.

In addition, France is on Friday again on the grill of the rating agencies, after the lowering of its rating by Fitch last month.

This time, it is S&P Global which could in turn sanction the French government for its management of finances and the recent social crisis. His verdict is expected in the evening, around 11:00 p.m.

Renault drives despite complaints

Nearly 2,000 owners of Renault, Dacia and Nissan cars will file a criminal complaint against Renault Group and Nissan on Monday before the Nanterre Criminal Court (Hauts-de-Seine), the plaintiffs’ lawyer said on Friday.

The action of the French automotive group was not affected Friday around 10:30 am by these events, even posting the second largest increase in the CAC 40 (+ 3.41%).

source site-96