The Paris Stock Exchange ends up, turned towards American inflation

The Paris Stock Exchange ends up, turned towards American inflation
The Paris Stock Exchange ends up, turned towards American inflation

The Paris Stock Exchange ended up 0.55% on Thursday, the day after its worst session since the beginning of January, the market remaining focused on the publication of the PCE inflation index for the United States expected on Friday.

The flagship CAC 40 index advanced 43.48 points, to 7,978.51 points. On Thursday, it dropped 1.52%, to 7,935.03 points. It had not seen such a marked decline since January 3. Over the week, the CAC 40 posted a decline of 1.44%.

“It’s a somewhat technical session after the sharp drop the day before”comments Frédéric Rozier, portfolio manager at Mirabaud France.

In a market “with increasing questions about rate cuts” of the American central bank (Fed), the market turned to the publication of American GDP, explains the manager.

US GDP growth in the first quarter of 2024 slowed more than initially announced, to 1.3% instead of 1.6%, according to the US Department of Commerce, a revision however a little less sharp than expected , since analysts expected growth of 1.2%, according to the Market Watch consensus.

“The American growth figures were important enough to see if we were in the process of slowing down the economy, which would provide justification for the Fed to lower its rates” during its next monetary policy meeting on June 12, underlines Frédéric Rozier.

The market is awaiting the publication on Friday of the PCE index, which is the inflation measure favored by the American central bank (Fed).

The PCE will be “the market catalyst” And “only this figure would validate the scenario of a rate cut in the United States”estimates Frédéric Rozier.

On the bond market, the rate on ten-year notes rose to 4.55% around 3:50 p.m. GMT, compared to 4.61% at the close on Wednesday. French, at the same maturity, moved at 3.14% against 3.17%.

Neoen suspended, Voltalia leaped

New takeover and takeover bid in sight in the green energy sector, very shaken by the rise in interest rates: the French producer of renewable energies Neoen is in the process of being bought by the Canadian asset manager Brookfield, which valued at 6.1 billion euros.

The French company, created in 2008 and “profitable since 2011” according to its CEO Xavier Barbaro, is a “pure player” renewable energy company which has gradually built a presence in 16 countries, starting with Australia, France and Finland, where it has the largest wind farm in the country.

Elsewhere in the sector, Voltalia jumped 18.16% to 10.80 euros.

Pierre et Vacances reduces its loss

The Pierre et Vacances-Center Parcs group (+7.55% to 1.60 euros) slightly reduced its net loss in the first half of its staggered financial year and revised upwards its financial forecasts for 2024 as well as its five-year objectives .



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