The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / Eric PIERMONT)
The Paris Stock Exchange remained on its achievements on Wednesday, not taking risks before announcements concerning American monetary policy and the meeting of the European Central Bank on Thursday.
The star CAC 40 index fluctuated little (-0.07%) and ended at 7,077.11 points. The Parisian market has been playing it safe for three sessions.
On Tuesday the CAC 40 ended the month up 9.4%, its best month since November 2020, when the arrival of anti-Covid vaccines had raised hopes of ending the health crisis.
The decision of the Federal Reserve (Fed) will be announced in a press release at 7:00 p.m. GMT and the president of the institution Jerome Powell will hold a press conference thirty minutes later.
The Fed is preparing to raise its rates for the eighth time in a row since March 2022, but more moderately than before, to slow down consumption and thus prevent prices from continuing their vertiginous escalation.
For Yann Azuelos, fund manager at Mirabaud, “the real meeting of the week is the ECB, which should raise its rates by 0.5 percentage point”.
“Inflation remains at a high level” and the ECB “is late on rate hikes”, he recalls. According to him, the ECB must raise its rates “around 5%”, which implies “a fairly sustained rate of growth rate”.
Orpea makes a roller coaster
The group of retirement homes announced on Wednesday that it had reached an “agreement in principle” with some of its creditors and a group of investors led by the Caisse des dépôts (CDC), accompanied by insurers, including CNP Assurances and mutual insurance companies. Maif and Mascf, to clean up its finances.
This agreement provides for the conversion of the group’s debts into capital. At the end of the process, the CDC will hold 50.2% of the capital of Orpea, the creditors 49.4% and the current shareholders, if they decide not to participate in the capital increases which will be open to them, 0, 4%.
The prospect of this almost total dilution prompted them to sell their shares massively on Wednesday, the Orpea share fell 22.19% to 5.54 euros.
Preliminary discussions at Casino
The Casino group confirmed after the close of the session “exploratory discussions” with a view to bringing together its distribution activities with Teract in France. This merger with the company that owns the garden center networks Jardiland, Gamm Vert or Delbard, could “not succeed”, warned Casino in a press release.
Distribution represents a significant part of the Casino Group’s activities. Its action gained 1.86% to 11.49 euros, while that of Teract took 5.90% to 6.46 euros.
Butter in Bonduelle spinach
The French specialist in canned and frozen vegetables saw its sales increase by 13.6% during the first half, thanks in particular to price increases in Europe, but is showing caution for the rest of its financial year. The action took 4.38% to 12.88 euros.
Wanted Eramet
The mining group Eramet climbed 13.88% to 104.20 euros, supported by an upward revision of the recommendation on the title to “outperform” against “neutral” by Oddo BHF.
© 2023 AFP
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