The Stock Exchange ends with a new record American – 05/15/2024 at 6:21 p.m.

The Stock Exchange ends with a new record American – 05/15/2024 at 6:21 p.m.
The Paris Stock Exchange ends with a new record after American inflation – 05/15/2024 at 6:21 p.m.

The control room of Euronext, the company that manages the Stock Exchange (AFP / ERIC PIERMONT)

The Paris Stock Exchange ended up 0.17% on , setting a new closing high the decline in US in April, which moved in line with market expectations for the first time this year.

The star CAC 40 index gained 14.19 points to 8,239.99 points, surpassing its closing record set the day before.

After opening sharply higher and a few points from its session peak reached on Friday (8,259.19 points), the Parisian rating has declined, weighed down by its heavyweights: notably luxury after the poorly received results of the British Burberry, TotalEnergies ( -1.24%) with the turbulence in oil prices or even Sanofi (-1.23%).

But the publication at the beginning of the afternoon of the CPI price indicator in April in the States gave new impetus.

Inflation resumed its downward trajectory in April in the United States, after three months of rebound, to 3.4% over one year compared to 3.5% in March.

“For two weeks, we have had favorable signals with first the job market which is cooling and now inflation which is ebbing,” analyzes Lionel Melka, manager of Swann Capital.

If the gap with March remains small, “the trend is important” because the most volatile elements of inflation, energy and food, are now more stable.

This is, moreover, the first time that inflation in 2024 has come out in line with market expectations, after three upward surprises.

These surprises forced investors to postpone, first from March to June and then even further, the prospect of a first rate cut from the Fed, the American central bank.

Easing financial conditions are a driver for risky assets like stocks, but the Fed doesn’t want to let its guard down too quickly because the policy rate is its main tool for controlling inflation.

“For the moment, we are in phase for a rate cut in September,” estimates Mr. Melka.

On the bond market, government interest rates also reacted well following the publication. The French government’s 10-year bond, rising before the announcement, finally ended down, at 2.90% compared to 3.03% the day before.

CGG jumps after its results

CGG’s record turnover was welcomed by investors, and the stock jumped 19.64% to 0.56 euros. But over the year, the stock fell by more than 7%.

The stock market operator Euronext also took advantage of its record turnover to gain 3.20% to 87.00 euros per share. Shareholders also rejected on Wednesday the remuneration of the group’s executives for the year 2023 during a non-binding vote during the general meeting in the Netherlands, where the group’s head office is located.

Conversely, the motorhome specialist Trigano fell 7.06% to 143.70 euros, with investors particularly concerned about the group’s cash flow level.

Luxury at a loss

Like other luxury houses, the British Burberry saw its annual profit fall during its 2023-2024 financial year, the victim of sluggish demand around the world, particularly from Chinese customers who are usually so important to the sector.

This publication led to other companies in the sector in , such as Hermès (-0.61% to 2,286.00 euros), LVMH (-0.37% to 789.00 euros) and Kering (-0.63% to 789.00 euros). 336.70 euros), even if the losses were reduced at the end of the session.

Euronext CAC40

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