The Paris Stock Exchange ended up 0.68% on Monday, supported by the economic reopening of China, the slowdown in inflation in the euro zone and the idea that the American economy could slow down without falling into recession.
The star CAC 40 index rose 46.41 points to 6,907.36 points, above 6,900 points for the first time since February 18, 2022, before the Russian invasion of Ukraine. On Friday, it ended up 1.47% and ended a week up 5.98%, its best performance since November 2020, when the effectiveness of vaccines against Covid-19 was announced.
Investors were satisfied with the latest figures on the US labor market, with the slowdown in the rise in the average hourly wage, as well as the fall in the inflation rate in the euro zone.
“So far the European and American economies have been more resilient than expected,” comments Vincent Juvyns, strategist for JPMorgan AM, which encourages the thesis of a soft landing for the American economy.
However, he qualifies and anticipates, “at best, a stagnation of the economy, which is not a very exciting scenario”.
Moreover, “there is no reason to claim victory over inflation in Europe”, which may explain some volatility in bond rates. “Core inflation”, which excludes energy and food prices, “continues to rise”, adds Mr. Juvyns.
A speech on Tuesday by Federal Reserve Chairman Jerome Powell and Thursday’s release of the CPI inflation indicator for December in the United States will give investors further guidance. Many hope that the Fed will be less tough in the coming months.
Plastic: Danone sued
NGOs want a judge to force the French multinational yogurt and water bottles Danone (-1.03% to 49.14 euros) to overcome its addiction to plastic which often fails in nature, in a summons consulted Monday by AFP.
Crossroads at the top of the gondola
Carrefour’s action recorded the second best performance of the session at the CAC 40, gaining 4.40% to 16.72 euros, after jumping 1.84% on Friday. Bank of America on Friday raised its recommendation on the stock for 2023 from “neutral” to “buy”, according to financial agency Bloomberg. Casino is also favored by the American bank, which allowed the price to rise by 2.36% to 11.30 euros on Monday.
Euronext CAC40