(BFM Bourse) – The Paris Stock Exchange is set for a fourth consecutive session of decline this Friday. The market is awaiting the publication of the PCE index in the United States this afternoon.
The Paris Stock Exchange is losing further ground this Friday. The CAC 40 dropped 0.36% mid-session, to 7,505.00 points. For the moment, the index is down 1.6% over the week.
Investors remain tense two days before the first round of the French legislative election. The yield on France’s 10-year bond rose 4 basis points (0.04 percentage points) to 3.30%. The gap with the German bond of the same maturity, the so-called “spread”, is at 84 basis points, according to Bloomberg data. According to the American agency, this is the highest level since 2012, during the sovereign debt crisis in the euro zone.
Remember that this “spread” serves as a thermometer to measure market stress on French debt, by comparing the yield on its 10-year bonds with those of a virtuous country in terms of public finances, namely Germany.
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L’Oréal in the tough
“Market questions regarding budgetary balances, but also future economic measures, continue to put pressure on French assets,” adds Xavier Chapard of LBPAM. “At this stage, the markets are far from anticipating a worst-case scenario (in terms of budgetary slippage and tensions with the European authorities,” he adds, however.
Investors will also watch the publication at 2:30 p.m. of the PCE index in the United States, the preferred gauge of the American Federal Reserve (Fed), to measure inflation. Economists surveyed by the Wall Street Journal expect an increase of 2.6% over one year, excluding food and energy prices.
On the value side, L’Oréal conceded 2.7% after its general director, Nicolas Hieronimus, announced a lowering of the outlook for the beauty market on Thursday, according to comments reported by Bloomberg.
Air France-KLM lost 4.5%, penalized by a downgrade of Barclays’ advice which went from “overweight” to “in line weighting” on the stock.
On other markets, the euro gained 0.04% against the euro to $1.0707. Oil rose slightly. The September contract on North Sea Brent advanced 0.7% to $85.86 a barrel, while the August contract on WTI listed in New York gained 0.8% to $82.41 a barrel.
Julien Marion – ©2024 BFM Bourse
