(BFM Bourse) – The Paris Stock Exchange is back on the rise, after a battery of statistics highlighting the robustness of the American economy. The CAC 40 ended its run close to 7,500 points, this Tuesday evening, despite a defense sector under pressure.
After a slight false start on Monday, the Paris Stock Exchange is getting back on track. This Tuesday evening, the CAC 40 rose by 0.51% to 7,487.42 points, not without having made several incursions above 7,500 points during the session.
The Paris stock market found a Source of inspiration with the battery of American indicators published this afternoon and rather well done. Retail sales for August came out, against all expectations, up 0.1% over one month, where economists feared a decline of 0.2% on a monthly basis.
“These data suggest that consumer spending remains relatively robust, despite global economic uncertainties,” said Pepperstone’s Quasar Elizundia.
As for industrial production, it is also a good surprise for the markets which noted a 0.8% increase in activity in August. A figure which is higher than the consensus expectations (+0.2%) and marks a strong rebound compared to the 0.7% decline in July which was marked by the passage of Hurricane Beryl.
The publication of this series of crucial indicators comes on the eve of the US Federal Reserve’s monetary policy decision. While a rate cut is in the cards, uncertainty remains over its magnitude. According to the CME FedWatch tool, investors attribute a 59% probability to a rate cut of 50 basis points (0.5 percentage points), compared to 62% the day before.
Air France-KLM on takeoff, defense on the tarmac
On the value side, defense sector stocks suffered on Tuesday following a Bloomberg article mentioning discussions between Ukraine’s allies on a potential ceasefire. Bottom of the CAC 40 on Tuesday evening, Thales lost 3.8%, while Dassault Aviation recovered 2.7%.
On the other hand, Air France-KLM gained 4.7%. An industry expert linked this increase to comments from Ryanair CEO Michael O’Leary that fare discounts are decreasing. Which, according to this expert, underlines that macroeconomic fears about the sector may have been exaggerated. The analyst also points out that airlines tend, each year, to suffer during the summer, before rebounding in the fourth quarter. This seasonality effect may therefore have occurred a little earlier than usual.
On the smaller side, Mauna Kea Technologies maintained its rise, gaining 12.50% driven by encouraging clinical results for its lung cancer detection mechanism.
On other markets, the euro is down slightly (-0.1%) against the dollar at 1.1118 dollars. Oil is regaining some ground. The November contract on North Sea Brent is up 1.40% at 72.26 dollars per barrel while the October contract on WTI listed in New York is up 1.70% at 70.19 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
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