The Paris Stock Exchange closed in the green on Monday, rebounding after a week of sharp decline and is now looking ahead to US inflation figures and the European Central Bank meeting.
The leading CAC 40 index ended with a rise of 0.99%, an increase of 72.96 points, at 7,425.26 points.
After a poor employment figure that increased fears of a hard landing for the American economy, the markets ended in the red on Friday, at the end of a week marked by fears of a recession in the United States.
The CAC 40 index fell by 3.65% over the past week.
After this week of decline, investors are now putting the health of the world’s leading economy into perspective.
“There is certainly a slowdown in the manufacturing sector, which is clear, but the American consumer is still doing very well,” notes Christopher Dembik, investment advisor at Pictet AM.
Especially since “seasonality is working in favor of a generally weak month of September”, while trading volumes and liquidity are currently low on the markets, notes Konstantin Oldenburger, analyst at CMC Markets.
Investors’ attention is now expected to turn to the U.S. consumer price index on Wednesday, with a forecast of 2.6% in August, down from 2.9% in July.
The second point of focus this week will be the European Central Bank (ECB) meeting on Thursday, which is expected to cut rates by 0.25 percentage points, according to economists’ forecasts.
“There will be no surprises regarding the rate cut, but investors will be closely following President Christine Lagarde’s speech on the next steps she will take with her monetary policy,” Philippe Cohen, portfolio manager for Kiplink Finances, told AFP.
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On the bond market, the interest rate on 10-year French loans remained stable at 2.88%.
Ubisoft in free kick
The video game giant’s stock ended down sharply by 7.13%. According to the financial agency Bloomberg, the French company was downgraded by analysts at Cantor Fitzgerald, who pointed out the “disappointment” of some players on its new game “Star Wars Outlaws”.
The group is also the target of the AJ Investment fund, a minority shareholder, which is asking in particular to “transform the group into a private company”, with the Chinese Tencent, which already holds 10% of Ubisoft’s capital, as a “significant shareholder”. Ubisoft has been going through a bad patch for several months and has lost 40.93% since the beginning of the year. The group was removed from the broader pan-European Stoxx 600 index last week.
Kering still in the red
French luxury giant Kering continued its downward trajectory, losing 2.52% on Monday, amid disappointing results over the past few months, particularly due to sharply lower sales at Gucci, while demand in China, one of its main markets, is slowing down. “We believe the potential recovery timeframe continues to lengthen and our estimates do not predict that Gucci will return to positive revenue growth before 2025,” RBC analysts said.
Other luxury stocks ended in mixed order: Hermès lost 0.26% and LVMH gained 0.69%.
Euronext CAC40
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