The Paris Stock Exchange ended down 0.56% on Friday, disappointed by PMI activity indicators below expectations in the euro zone and still remaining in the shadow of the early legislative elections in France.
The flagship CAC 40 index fell 42.77 to 7,628.57 points. Over the week, it advanced by 1.67%, without far from compensating for its fall of more than 6% last week.
Since January 1, the Parisian rating is only slightly in the green (+1.13%).
The session was dominated by PMI indicators for June in France and the Eurozone.
In France, activity fell for the second consecutive month in both services and industry, and to a greater extent than analysts expected.
The figures also disappointed for the euro zone, even if activity increased, thanks to the services sector.
“The global economic data published this week paint a mixed and uncertain picture of the progress of the recovery,” underlines Florian Ielpo, head of macroeconomic research at Lombard Odier IM.
Not enough to make investors forget the uncertainties in France just over a week before the first round of early legislative elections, triggered by the dissolution of the National Assembly decided by Emmanuel Macron on the evening of the European elections.
On the bond market, the gap between the German rate and the French rate, which illustrates investor confidence in France, has increased. The French 10-year rate, the benchmark maturity, increased slightly to 3.2066% when the German rate fell to 2.4078%.
This is the largest closing gap since 2012, according to Bloomberg, without however exceeding the levels reached during the session on Friday June 14 and Monday June 17.
“We are in a position of waiting, even of restraint,” underlines Weill-Alliel, manager of Uzes Gestion. “Companies can say to themselves that they prefer to wait, not to place an order. France is becoming less attractive,” she explains.
Waiting is also favored as the end of the first half looms and investors look ahead to the results publications.
Next week has few leading indicators, and we will have to wait until Friday to see the first inflation data in France.
Renault sanctioned
In Paris, the car manufacturer’s action recorded the second worst performance of the CAC 40 (-2.99% to 48.66 euros) after the announcement by the Fraud Repression Agency (DGCCRF) of a sanction against Renault of 2 million euros in fines for late payments to its suppliers.
Also sanctioned, for a fine of 1.5 million euros, ArcelorMittal fell 1.88% to 31.97 euros.
STMicroelectronics relaunches share buybacks
The action of the Franco-Italian manufacturer of electronic chips STMicroelectronics lost 1.07% to 38.02 euros, after the announcement in the morning of the completion of its share buyback programs initiated in 2021 and the launch of a new share buyback plan of $1.1 billion over 3 years in 2024.
Over the week, the company achieved the second worst performance in the CAC 40 (-3.53%), behind Carrefour (-4.41% to 13.77 euros), singled out for its practices with its franchises.
Atos sliced
Atos shares fell 32.56% to 1.17 euros on Friday, even if they remained up more than 30% over the week.
The value, which has plunged 83% since the start of the year, is particularly volatile, with a series of sessions of strong increases or decreases. On Friday, the IT group announced a definitive agreement with banks and creditors for interim financing of 450 million euros.
Euronext CAC40
