The Paris Stock Exchange is moving lower on Thursday, cautiously before the publication of American inflation and the announcement of the finance bill for 2025 in the evening.
The flagship CAC 40 index fell by 0.33%, or 25.14 points, to 7,534.95 points at 9:40 a.m. On Wednesday, it finished up 0.52%.
“France’s budget for 2025 will be presented in the evening”comments Jim Reid, economist at Deutsche Bank.
The executive will detail how it intends to find 60 billion euros in the finance bill (PLF) and social security financing bill (PLFSS) to restore adrift public finances.
This budget is particularly awaited, after “Prime Minister Michel Barnier’s speech last week, in which he declared that the objective of bringing the public deficit below the limit of 3% of GDP permitted by the European Union would be postponed by two years, to 2029”explains the economist.
The challenge for France is also to reassure investors, so that the cost of debt does not soar and does not weigh further on its economy.
On the bond market, the interest rate on 10-year French government bonds stood at 3.04% around 9:40 a.m., when the Spanish equivalent was at 3.02%. Concretely, this means that France must borrow at a higher rate than its Spanish neighbor to finance itself on the markets.
In comparison, the German 10-year rate, which is the benchmark in Europe, stood at 2.27%.
Before French political and economic news, investors will turn to “the publication of American inflation figures”comments John Plassard, investment specialist for Mirabaud.
“Falling figures could fuel the scenario of a +soft landing+ for the American economy”or a slowdown in the economy which makes it possible to gradually curb inflation, so as to avoid the world’s leading economic power entering recession, he added.
The Consumer Price Index (CPI) for September in the United States will be published at 2:30 p.m. (12:30 GMT).
Airbus expands its order book
The European aircraft manufacturer delivered 50 new aircraft in September, a slight increase compared to the previous month, but increased its order book with contracts for 235 aircraft, it announced on Wednesday. Its title gained 0.17% to 127.66 euros.
