(BFM Bourse) – The Parisian index regained some ground this Wednesday, further assessing the situation in China. The market was also able to show caution while awaiting the publication of the minutes of the last meeting of the American Federal Reserve.
After being weighed down by China on Tuesday, the CAC 40 regained some momentum this Wednesday. The flagship index of the Paris market rose 0.52% to 7,560.09 points.
Markets continued to digest their disappointment from the day before, as Chinese authorities did not announce any large-scale additional stimulus measures to support growth, thus disappointing investors.
“The statements of the president of the powerful National Development and Reform Commission (NDRC) have cooled investors. While the incredible rebound of Chinese stocks over the past week was strongly fueled by the expectation of the announcement of a substantial budgetary support plan, the leader announced an increase in public spending of an additional 200 billion yuan ($28 billion) in 2024, which would be taken from the 2025 commitments”, recalls Sebastian Paris Horvitz , from LBPAM.
“Is this simply a communication error? It is certain that the authorities must clarify as quickly as possible what their plan to support the economy is,” he adds.
Renault still at the top of the CAC 40
“Hopes of a rally fueled by stimulus measures are quickly fading, forcing investors to rethink their strategy towards China” wrote Stephen Innes of Spi AM.
The market was also able to show caution before the publication of the “minutes” (minutes) of the last monetary policy meeting of the American Federal Reserve. “There is no debate on the direction of the policy (easing) but on the speed of the adjustment. The minutes will perhaps provide clarification on this point,” judge the economists at Oddo BHF.
On the value side, Renault finished at the top of the CAC 40, with an increase of 3.3%, continuing its stock market rally that began the day before. The car manufacturer, almost the only one in Europe not to have issued a profit warning in September, held a conference call on Tuesday morning ahead of the publication of its turnover on October 24.
Bernstein considered the signals sent by the group “reassuring”. “And yet, Renault seems to be doing very, very well,” said Stifel in a note dedicated this Wednesday to the diamond manufacturer.
Still in the automotive sector, the equipment manufacturers Forvia (+4.3%) and Valeo (+3%) were supported by the German Continental (+7% in Frankfurt). The group from across the Rhine reassured the market, indicating during a conference call that it was counting on a quarterly increase in its profitability in the third quarter compared to the second.
Kering gained 1.5% after Tuesday’s appointment of Stefano Cantino as general manager of Gucci, to revive the Italian brand in decline. Royal Bank of Canada considers this appointment “positive” for the stock.
On the foreign exchange market, the euro lost 0.25% against the dollar, to 1.0952 dollars. As for oil, it fell after the publication of oil stocks higher than expected in the United States. The December contract on Brent from the North Sea fell 0.6% to 76.72 dollars per barrel while that of November on WTI listed in New York lost 0.4% to 73.28 dollars per barrel.
Julien Marion – ©2024 BFM Bourse
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