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Paris (AFP) – The Paris Stock Exchange advanced with parsimony on Wednesday, investors now focusing their attention on macroeconomic indicators and the results of companies to come after having digested earlier the announcement of a monetary status quo from the Bank of Japan.
The star CAC 40 index grabbed 0.10% to 7,084.35 points around 10:45 a.m. after five consecutive sessions in the green.
“Markets are looking to US retail sales and US Federal Reserve speakers in Davos expected later in the session,” Markets.com analyst Neil Wilson said.
Earlier, the Bank of Japan maintained its policy rates and yield curve control policy.
Speculation on an upcoming monetary tightening had however been revived since December when the BoJ had raised by surprise to 0.5% the ceiling of Japanese bond yields to 10 years that it tolerates.
For many observers, the BoJ’s change of direction is only a postponement, while its governor Haruhiko Kuroda will complete his second and last term in early April.
“Now we have a market that thinks one thing and the BoJ that says and acts differently at the moment,” observes Neil Wilson.
Attention will now turn to the producer price index and retail sales in the United States expected in the afternoon, important data for estimating the evolution and impact of inflation in a context of growing economic optimism for the coming quarters.
“The good news is that producer prices are expected to fall in December”, which “would confirm that inflationary pressures are easing across the Atlantic”, notes Christopher Dembik, director of macroeconomic research at Saxo Bank.
In the United Kingdom, inflation slowed to 10.5% year on year in December against 10.7% in November but remains at historically very high levels, fueling a cost of living crisis in the country.
Fnac Darty in bulk
The distributor’s share tumbled 5.96% to 34.38 euros around 10:25 a.m. after the group lowered its cash flow expectations, its main financial objective, citing a difficult end to the year 2022 due to the decline in household purchasing power, with a “decline in sales” over the crucial period of December.
Another year of declining sales for the Renault group
The title of the automotive group, the best progression of the CAC 40 this year, gained 0.83% to 38.34 euros. Its sales saw a fourth straight year of decline in 2022, plunging 5.9% last year and just topping two million vehicles sold. The group’s order portfolio in Europe remains at a “record” level of 3.5 months of sales, as of December 31, 2022, due to transport problems for new vehicles.
The best at Pierre & Vacances
The action climbed 5.89% to 1.33 euros around 10:40 a.m. The European leader in leisure residences, indicated that it was concentrating on “controlling its costs” in an “uncertain” period, and published an improvement in turnover over one year and in line with its objectives, in the first quarter of its staggered 2022/23 financial year.
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