(BFM Bourse) – The CAC 40 rose mid-session on Wednesday while awaiting the outcome of the meeting of the American Federal Reserve. Renault recorded by far the largest increase in the CAC 40, driven by speculation of a merger between Nissan and Honda.
The Paris Stock Exchange is, for the moment, awaiting the outcome of the meeting of the American Federal Reserve (Fed) with serenity. The CAC 40 thus advanced by 0.27% to 7,386.90 points at mid-session on Wednesday, December 18.
Investors will be watching this Wednesday evening for the Fed’s verdict for its last meeting of the year. “We still see, like the market consensus, the Fed lowering rates by 25 basis points (a quarter of a percentage point, Editor’s note) today, then slowing the pace in 2025,” writes Sebastian Paris Horvitz, of LBPAM .
“But, while the rate cut cycle started only a few months ago, it could already be paused in early 2025. Why? Because the main price indexes in the United States have not made new progress towards the objective for several months and that the American economy continues to display insolent health”, warns Alexandre Baradez of IG Markets.
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Renault featured
The press conference given by Fed Chairman Jerome Powell will, with this in mind, be keenly followed.
In terms of values, Renault stands out. The automaker benefits from information from Nikkei reporting that Nissan and Honda have entered into talks with a view to a merger.
This hypothetical operation would be favorable to Renault, because it would facilitate potential sales of Nissan shares of which Renault still holds a little less than 36%.
Vivendi gains 2.3%. This Wednesday, Barclays bank resumed coverage of the stock with an “overweight” opinion, equivalent to buying. The bank simply summarizes the situation: post-split into four companies, Vivendi is now an investment company whose 95% of the value resides in shareholdings in listed companies.
If Vivendi sells these stakes, its upside potential is significant (nearly 40%), whereas if it retains its stakes, its upside potential remains limited to 10%. Barclays leans towards the first possibility with a probability of 60%.
Euronext also announced that, Monday December 23, Vivendi would leave the CAC 40 and be replaced by Bureau Veritas, which gained 0.7% this Wednesday.
On other markets, the euro gained 0.1% against the dollar to 1.0502 dollars. Oil is rising a bit. The February contract on North Sea Brent gained 0.5% to $73.58 per barrel while the January contract on WTI listed in New York advanced 0.6% to $70.51 per barrel.
Julien Marion – ©2024 BFM Bourse
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