It’s a day of celebration on the stock market this Friday with not only a record for the Cac 40, but also for the Dax in Frankfurt, the FTSE in London and more broadly for the European Stoxx 600 index, which concentrates largest companies on the continent. A trend supported by the feeling that the American Federal Reserve could well implement the monetary easing that it promises this year and by a good season of corporate results.
At mid-session, the Cac 40 gained 0.81% to 8,255.12 points in a business volume of 600 million euros, after a historic peak at 8,259.19 points. Over the week, it is up 3.72% for the moment, its best weekly performance since March 2023.
In New York, index futures contracts suggest a green opening, which would allow the Dow Jones to record an eighth session of growth. Investors have been more calm of late after the Fed deemed another rate hike unlikely in the current cycle and US employment data showed an easing jobs market and wage pressures . September appears to be the most likely deadline for a Fed rate cut. A lesser evil when the most pessimistic analysts do not expect any rate cut before 2025 given the worrying trend in inflation since the start of the year. Markets will be closely watching April producer and consumer price figures next week for signs that disinflation is resuming.
Legrand, at the top of the Cac 40, doubly raised by Citi
But first, at 4 p.m., we will look at the American consumer confidence index developed by the University of Michigan, along with one-year and long-term inflation expectations.
British operators also welcomed the economy’s exit from recession with an increase in GDP of 0.6% over the January-March period, while the market and the Bank of England forecast an increase of 0.4%. %. “ We expect continued growth for the remainder of this year, supported by a more favorable economic context “, notably the fall in inflation and the rise in wages, commented Yael Selfin, economist at KPMG.
On the values side, all components of the Cac 40 are on the rise, from L’Oréal (+0.06%) to Legrand (+2.84%). The electrical infrastructure specialist benefits from Citi’s recommendation increase from “sell” to “buy” and its price target of 47% to 125 euros, anticipating a return to growth in turnover in the field this year. data centers.
