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Paris (AFP) – The Paris Stock Exchange ended the week down 0.20%, following a quiet session where some macroeconomic data was published while Covid cases in China weighed on luxury.
The star CAC 40 index fell 13.07 points to 6,504.90 points. Thursday, it had finished down 0.95%, but over the week the Parisian place nevertheless took 0.81%.
The week saw some turmoil following good and bad news on the macroeconomic and microeconomic fronts.
Compared to a usual end of the year, “the month of December was rather hectic due to the news”, notes Alexandre Baradez, analyst of IG France who quotes in addition to the meetings of the central banks the last indicator of PCE inflation “which happens today, on Christmas Eve”.
According to this index, the rise in prices slowed markedly in November in the United States, falling to 5.5% over one year once morest 6.1% in October, a figure in line with analysts’ expectations.
And over one month, the increase is only 0.1%, when it was 0.4% in October.
Still on the good news, consumer confidence, according to the University of Michigan, rebounded more than expected in December and their inflation expectations are falling, according to Mr. Baradez.
But on the other hand, consumption increased by 0.1% over one month in November, less than expected by economists (+0.2%), which is explained, according to Oxford Economics, by the sharp rise interest rates and the still high rate of inflation.
“The market does not really know which foot to dance on, the macroeconomic data are very negative but the Federal Reserve is not yet ready” to soften its monetary tightening, comments Alexandre Baradez.
According to the expert, “the market is waiting for signals from the Fed that it is seeing progress on inflation”, which would open the door to a change in the direction of its monetary policy.
The Paris Bourse is now closed for three days, December 26 being traditionally a holiday for the Parisian place.
Luxury coughs
Luxury stocks have been penalized by the explosion of Covid cases in China, “expected consequence of the reopening of the country” following two years of zero-Covid policy, underlines Alexandre Baradez.
LVMH lost 1.49% to 673.80 euros, Hermès 1.47% to 1,443 euros and Kering 0.66% to 471.95 euros.
Stellantis and Engie put a wheel in hydrogen
Stellantis (+0.61% to 13.19 euros) has entered into exclusive negotiations to take a stake in the capital of Symbio, a joint venture of Faurecia (+3.08% to 13.91 euros) and Michelin (+2 .19% to 26.61 euros) in the field of hydrogen, the automaker said in a statement on Friday.
Hydrogen Refueling Solutions (HRS) rose 7.41% to 22.04 euros following announcing Thursday evening a commercial and technological partnership with the energy company Engie to develop projects related to hydrogen. The Engie share fell 0.24% to 13.58 euros.
movement in insurance
The insurance branch of Crédit Agricole (+0.16% to 9.77 euros) and the Italian bank Banco BPM have signed a memorandum of understanding for the establishment of a long-term bancassurance partnership, according to a press release from the French bank on Friday.
© 2022 AFP
