Cac 40: The Paris Stock Exchange revives after the publication of a salvo of economic indicators

CAC 40: Betting on less aggressive central banks, the CAC 40 recovers 4% in the week

(BFM Bourse) – After a rocky start to the session, the Paris Stock Exchange rallied throughout the day to close 0.5% higher on Friday night. The Parisian market barometer picks up 1.45% in the “intraday” and shows a rise of 4% at the end of a week rich in news.

The Parisian market digested very well the great batch of quarterly results of the week, which ended with a weekly gain of 4% thanks to a new rise of 0.46% registered this Friday, closing at 6,273.05 points.

However, the start of the session was feverish, with the CAC 40 even plunging 1% around 9:30am, cooled by rising inflation in France and Germany. Consumer prices rose 7.1% year-on-year in October in France and 11.6% across the Rhine. In addition, investors took note of gross domestic product releases from several countries. In Germany, growth defied expectations and rose again, to 0.3% in the third quarter, while the government anticipated a drop. In France, it increased by 0.2% during the same period.

After a slowdown caused by these numbers, the Parisian market quickly recovered, returning to positive territory at the opening of the New York indices. Market operators also learned in the afternoon of the PCE index, the preferred barometer of the Federal Reserve to measure inflation. In fact, consumer prices according to this index have increased by 6.2% in a year, when the consensus expected 6.3%. Investors see it as a sign that the peak of inflation has passed, reinforcing the scenario of a less aggressive approach by the US Federal Reserve. This statistic will probably fuel the debates of the Fed that will hold its meeting. of monetary policy next week.

At the close of the European stock markets, the Dow Jones gained 1.80% to head for a sixth consecutive bullish session, the Nasdaq index appreciated 1.6% as did the S&P 500. It does not seem to move the markets much, although the title still uncurls 10% on Wall Street. Investors preferred to focus on Apple as the Apple brand reported earnings in line with market expectations.

Air France-KLM in turbulence

Business publications once again enlivened this busy weekend in this area. SES-imagotag (+6.5%) closed at all-time highs, once again acclaimed by the market thanks to its strong growth that never seems to want to stop. Safran (+2.4%) also delighted the market with adjusted revenue up more than 30% in the third quarter.

Airbus (+3.7%) posted the largest increase in the CAC 40, after raising its cash target for all of 2022.

For its part, Air France-KLM fell 13% despite good results in the third quarter, penalized by taking profits.

Bic lost more than 11% at the close after reporting degraded profitability in the third quarter.

The operators of nursing homes Orpea (-20.4%) and Korian (-17%) suffered again on Friday. “The market is aware of the potentially very dilutive impact of the debt restructuring measures planned by Orpea. And Korian falls due to the contagion effect,” considers a financial intermediary.

Looking elsewhere, the euro lost 0.2% against the dollar at $0.9944. Oil contracts are down. North Sea Brent’s December contract fell 1% to $93.77 a barrel, while New York WTI of the same expiration fell 0.8% to $87.93 a barrel.

Sabrina Sadgui – ©2022 BFM Bourse

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