The Paris Stock Exchange fell 0.20% in early trading on Tuesday, still remaining close to its absolute record points, waiting to learn more about American inflation and the implications for Central Bank policy.
The flagship CAC 40 index fell by 15.31 points to 7,674.49 points around 9:15 a.m. The day before, it had advanced by 0.55%, reaching a new closing record, but without being able to beat the one in session, just above 7,700 points.
Like Frankfurt, or the United States, the Parisian coast has been flying from record to record since the start of the year.
The recovery in stock indices is due to a strong market reaction to encouraging company results. But it is also partly supported by the prospects [de baisses NDLR] of interest rates from central banks, explains Ipek Ozkardeskaya, analyst at Swissquote Bank.
It remains cautious because these rate prospects arrive on a slippery slope, with each official of the American Federal Reserve (Fed) adding a pinch of caution in their declarations concerning the timetable for key rate cuts.
Investors have already been forced to delay their estimate to the end of 2023, which anticipated a first cut in key rates from March. They are now planning it for May.
To provide new elements for the debate, the main event of the day, and of the week on a macro-economic level, is the publication of inflation figures for January in the United States, with the CPI indicator. It will be published at 2:30 p.m.
The rate is expected to fall with a high degree of certainty due to base effects, explains Spi AM analyst Stephen Innes.
However, underlying inflation, which excludes food and energy prices and is taken into account more by central banks, could paint a more contrasting picture according to him.
The United States is not yet out of the woods when it comes to inflation, even though markets generally claim otherwise, he believes.
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On the bond market, the 10-year rate of the French bond rose very slightly, to 2.87%.
Michelin is running on its cash flow
Automotive supplier Michelin recorded a record operating profit of 3.6 billion euros in 2023 thanks to its positioning in the high-end segment, thus rebuilding its cash flow. The group, however, recorded a slight decrease in net profit (-1.3%) to 1.983 billion euros. Investors appreciated and the price rose 3.21% to 31.84 euros, at the top of the CAC 40.
On the broader SBF 120 index, the boat manufacturer Beneteau also rose 4.36% to 11.96 euros after its financial point, thanks to an operational profit over the year higher than its forecasts.