European markets closed slightly lower ahead of the French elections and after the publication of inflation data on both sides of the Atlantic. In harmonized data, the PCE index in France in June is in line with expectations. It would amount to 2.5%. In the United States, it was also in line with expectations in core version. On the stock market, L’Oréal closed the march of the CAC 40 after the statements of its CEO. The CAC 40 fell by 0.68% to 7,479.40 points, bringing its losses to nearly 2% over the week. It lost 0.85% in the first half.
Nokia is strengthening its position in optical transmission equipment and investors are happy. The Finnish telecom equipment maker’s shares gained 1.72% to 3.55 euros. It will acquire the American company Infinera, for an enterprise value of 2.3 billion dollars. Nokia is offering 6.65 dollars per share, a premium of 28% compared to the closing price on June 26. The transaction is expected to be accretive to Nokia’s comparable earnings per share in the first year after the conclusion of the transaction. This accretive impact will exceed 10% by 2027.
Yesterday, at an event hosted by JP Morgan, the CEO of L’Oreal Nicolas Hieronimus recognized that the beauty market was a little less buoyant than expected due to the disappointing dynamics in China. 1, the rebound in China not materializing as expected. Consequently, the cosmetics giant’s action recorded the biggest drop in the CAC 40, losing 3.03% to 410.05 euros.
As a logical consequence of the latest developments in the Atos case, the latter was informed by David Layani and Helen Lee Bouygues of their resignation with immediate effect from the board of directors, and of their intention to withdraw Onepoint from the company’s capital. On the stock market, the share Atos fell 15% to 0.99 euros, bringing its losses since the start of the week to almost 16%. David Layani, the president and founder of Onepoint, and Helen Lee Bouygues were co-opted as administrators last February.
Today’s macroeconomic figures
At the end of the first quarter of 2024, public debt within the meaning of Maastricht stands at 3,159.7 billion euros, an increase of 58.3 billion euros, after +6.4 billion in the previous quarter, INSEE indicated this Friday. Expressed as a percentage of gross domestic product (GDP), it stands at 110.7%, after 109.9% in the fourth quarter of 2023.
In May, production prices in French industry decreased over one month for the sixth consecutive month (-1.2% after -2.8% in April), INSEE indicated this Friday. They decrease both for products intended for the French market (-1.4% after -3.6%) and for those intended for foreign markets (-0.4% after -0.3%). Over one year, production prices in French industry are down for the eleventh consecutive month (-5.1% after -5.4% in April). They are approximately 18% above their 2021 average level.
In May, household consumption expenditure on goods rebounded over one month (+1.5% in volume after -0.9% in April – revised data), INSEE reported this Friday. This rebound is explained by the increase in food consumption (+2.4%) and energy consumption (+3.9%). Consumption of manufactured goods decreased slightly (-0.3%).
Over one year, the harmonized consumer price index would increase by 2.5% in June 2024 in France, in line with expectations, after 2.6% in May.
The U.S. PCE price index rose 2.6% in May on an annual basis, compared with a consensus of 2.6% and 2.7% in April. The core version rose 2.6% on an annual basis, compared with a consensus of 2.6% and a 2.8% increase in April.
American household income increased by 0.5% in May after increasing by 0.3% in April. They were expected to rise by 0.4%. American household consumption increased by 0.2% in May after increasing by 0.1% in April. It was forecast to increase by 0.3%.
The University of Michigan’s consumer confidence index came in at 68.2 in June, down from 69.1 in May. It had been expected to be at 65.6.
The Chicago Purchasing Managers’ Index came in at 47.4 in June, compared with a consensus of 39.7 and a level of 35.4 in May.
At around 5:30 p.m., the euro gained 0.06% to 1.0711 dollars.
source : AOF
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