(BFM Bourse) – The Paris Stock Exchange is trading in the red this Tuesday, after the president of the ECB made restrictive comments on the fight against inflation.
The CAC 40 is falling again this Tuesday. The Paris index is down 0.7% at 7,507.03 points at mid-session. This time, the political context in France does not seem to have a real impact. The CAC 40 is actually holding up better than the other major European indices, with the DAX losing more than 1% at the same time.
Pierre Veyret, technical analyst at Activtrades, points out that “market sentiment has been put under pressure” following comments deemed restrictive by several members of the European Central Bank (ECB), including its president Christine Lagarde.
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Teleperformance in the spotlight
The central banker spoke in Sintra, Portugal, after the market closed. According to Deutsche Bank, Christine Lagarde said the ECB still faces several uncertainties in its fight against inflation, including the evolution of wages, productivity and profits. The ECB president also added that the institution would need time to gather enough data to be sure that the risks of inflation rising above its target have been averted.
“Since monetary policies are still considered the most important driver of the stock market, the impact of this news is not surprising,” says Pierre Veyret.
In the eurozone, inflation did indeed slow in June, reaching 2.5% over a year compared to 2.6% in May. But core inflation, excluding food and energy prices (and alcohol and tobacco) rose by 2.9%, more than the 2.8% anticipated by economists surveyed by Reuters.
On the stock front, Michelin fell 4.5% as the company held a conference call in which it said its sales volumes were lower than expected.
Sodexo fell 5.3% after reporting comparable growth slightly below expectations in the third quarter and announcing the loss of a major contract.
On the contrary, Teleperformance posted the biggest increase in the CAC 40 with a 5.16% increase. The stock was driven by an upgrade in recommendation from Morgan Stanley, which moved to “overweight” from “in line weighting”. The bank emphasized that the market overestimates the threat to the company’s business posed by the rise of generative artificial intelligence.
On other markets, the euro is down 0.2% against the dollar at $1.0718. Oil is rising. The September contract on North Sea Brent is up 0.7% at $87.17 a barrel, while the August contract on WTI listed in New York is up 0.7% at $83.94 a barrel.
Julien Marion – ©2024 BFM Bourse
