The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended in the green (+0.06%) for a sixth consecutive session on Friday, achieving its best weekly performance since March thanks to the slowdown in inflation in the United States.
The star CAC 40 index gained 4.74 points to 7,374.54 points, after rising in session above 7,400 points, like the day before. Over the week, he gained 3.69%, and since January 1 13.91%.
This is its best weekly performance since the end of March, and the end of the banking crisis. For five weeks, the Parisian rating has been chaining clear upward variations (+2.43%; +3.30%), as well as downwards, (-3.05%; -3.89%).
It was the more pronounced than expected slowdown in inflation in the United States in June, according to the CPI index published on Wednesday, which motivated investors to return to riskier financial assets, such as equities.
“Everything suggests that the problem of inflation will dissipate”, underlines Charlotte de Montpellier, economist of ING, who notices in particular that the fall in rents, which have a significant weight in the American price index, is not yet taken into account.
In addition to corporate prices, oil has also rallied while the dollar and bond market interest rates have fallen sharply, signs that investors expect the US Federal Reserve to stop raising its limits soon. key interest rates.
Since March 2022, Western central banks have raised their rates sharply in order to fight inflation by reducing access to credit, and therefore economic activity.
“The next question is rather to know when the rate cut will be, but that should not be before 2024”, explains Ms. de Montpellier.
The rate of the French 10-year loan thus stood at 3.035%, against 3.181% the previous Friday.
Luxury and the technological sector at the party
Logically, the sectors most sensitive to variations in financing conditions have benefited, the technology sector in the lead.
STMicroelectronics (+8.06% to 47.33 euros) signs the second best weekly performance of the CAC 40.
Luxury, a sector where valuations are high and therefore needs low interest rates to support them, also benefited as did LVMH (+8.11% to 892.30 euros, the strongest increase in the index) and Hermès (+7.20% to 1,996.20 euros).
TotalEnergies suffers
The oil company TotalEnergies ended well behind the CAC 40 on Friday (-2.58% to 51.28 euros), with oil falling on Friday.
© 2023 AFP
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