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Paris (AFP) – The Paris Stock Exchange hesitated Thursday morning against a backdrop of rising bond yields and a new burst of corporate results to be analyzed in a context of great uncertainty.
After a more reckless opening than those of its European counterparts, the Parisian CAC 40 index started to fall again (-0.12% to 6,032.86 points around 10:55 a.m.), after having lost 0.43% the day before.
“Investor uncertainty and skepticism persist this week as the short to medium term outlook remains unclear for most market participants who are still weighing the prospect of an economic recession brought on by the current round of aggressive bank policy. plants”, summarizes Pierre Veyret, analyst at ActiVtrades.
After several sessions of gains, stock markets lost momentum on Wednesday, hesitating between optimistic corporate results and a macroeconomic environment still weighed down by high inflation which pushed bond yields higher.
The drop in sentiment in the trading rooms sent investors back to the dollar, a safe haven, which contributed to accentuating inflationary pressures outside the United States and to weigh on the equity markets.
The Fed’s Beige Book, released on Wednesday, two weeks before the US central bank’s next monetary meeting, depicted a slowdown in economic activity in the United States where a wind of “pessimism” is beginning to blow among entrepreneurs and where the price increase remains “high”.
Inflation estimates raise fears of further rate hikes by central banks to stem the rise in the cost of living.
In Europe, inflation is largely attributable to the energy crisis linked to the war in Ukraine.
Several European Commission proposals to reduce energy prices will be discussed Thursday and Friday at a summit of heads of state and government in Brussels.
In France, the Minister of Economy and Finance Bruno Le Maire said on Thursday that he wanted to bring inflation down to 5% at the start of 2023, 4% at the end of 2023 and 2% during 2024 but warning that in the event of a crisis “everything could fly to pieces”.
The business climate remained stable in October, indicates Thursday INSEE, which notes that if the prospects “deteriorate slightly” in services over one month, the situation “improves a little” in the other sectors.
Hermès struts everywhere, Edenred too
The luxury group Hermès (+ 1.03% to 1,318 euros) continued to experience “good momentum” in the third quarter of 2022 by achieving 3.14 billion euros in sales, a jump of 32.5% over a year, with all geographies posting “very solid performance”.
The French prepaid services company Edenred (+ 2.75% to 50.08 euros), parent company of Ticket Restaurant, again raised its 2022 objectives in view of a “new quarter of strong growth” in all its businesses and all geographical areas where it is present.
Red for Pernod Ricard
The Pernod Ricard title lost 1.81% to 176.75 euros despite a 22% increase in its turnover in the first quarter of its staggered financial year, placing itself above analysts’ expectations, supported by the increase in the price of its wines and spirits. The group believes that its growth should continue to be dynamic over the 2022-2023 financial year but has not quantified annual objectives, leaving investors a little in the dark.
© 2022 AFP