(BFM stock exchange) – The Paris stock exchange continues a fourth session of gains (+0.4%), on the eve of long-awaited data on inflation in the US and Europe. The CAC 40 closes at 7300 points, supported among others by Renault, coveted after raising its annual targets.
Unlike the previous week, the Paris stock exchange is heading for a flawless performance. The CAC 40, which was stuck at the gate of 7300 points on Wednesday evening, found the momentum sufficient to cross this threshold and end the day at 7312.73 points thanks to a gain of 0.36%.
The Paris star index even rose 0.9% shortly before 1 p.m., before gradually reducing its lead in the afternoon. Investors have noted the salvo of macroeconomic indicators on today’s agenda, including those published in the United States, which confirm the solidity of the world’s leading economy.
Gross domestic product (GDP) growth was revised to 2% year-on-year in the US first quarter, from 1.3% previously. The strength of US growth came as a surprise as it exceeded the 1.6% that some economists had expected. Also on the employment front, the signals are green with new weekly jobless claims falling to 239,000 against 264,000 the week before.
These numbers support the US central bank’s desire to tighten the tone of its monetary policy. In particular, the president of the US central bank (Fed), Jerome Powell, opened the door on Wednesday for two new increases in the key interest rates during the annual forum of the European Central Bank (ECB) in Sintra, Portugal.
With restrictive statements from major central banks, “investor discussions are naturally about the trade-off between growth and inflation and the possibility of price containment,” said Stephen Innes of SPI Asset Management.
It is therefore in this context that on Friday the market will follow the publication of data on inflation in Europe and the United States for the month of June.
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Renault at the helm
But first it was business news that focused investors’ attention on Thursday.
Renault led the CAC 40 (+5%) throughout the session. The automaker raised its 2023 targets thanks to a better-than-expected first half, thanks to the success of recent launches, notably the Austral.
Engie grew by 4.1 per cent. The energy group announced an agreement with the Belgian government to extend two nuclear power plants with a sharing of risks and costs, for a total liability of the company to Belgium of 23 billion euros. This agreement puts an end to a long period of uncertainty on this issue.
“This is an important clarifying event for the stock which should support a strong appreciation over the next few days/months and open up a number of strategic opportunities for Engie and potential buyers,” JP Morgan said in a statement. .
SES image roof continues to win back the market
Excluding the flagship index, SES imagotag rose 12.6% after providing new information to short-seller Gotham City Research, which accused it of accounting irregularities. The group requested certificates from its auditors to demonstrate that the transactions with the Chinese group BOE did not constitute revenue loops. The group has warned in passing that its first half would be the best in its history.
Imerys rose 4.2% after announcing it would mine Britain’s largest lithium deposit, boding well for its future sales in materials for electric vehicles.
As for small and mid-caps, ESI Group rose 47.3%, approaching the price of 155 euros per share proposed by the US Keysight to buy the French specialist in virtual prototyping.
The main drops of the day, they are very significant. Casino fell 32.3% after the retail group warned massive dilution awaited its shareholders as part of its upcoming financial restructuring.
Orpea fell 12.2 per cent. The retirement home operator’s shareholders and creditors have overwhelmingly, but not unanimously, approved the company’s rescue plan.
Elsewhere, the euro lost 0.3% to $1.0880. Oil, on the other hand, has fallen slightly. The contract for Brent from the North Sea for the month of August gives 0.3% to 74 dollars a barrel, while the contract with the same expiration on WTI listed in New York also loses 0.3% to 69.36 dollars per barrel. barrel.
Sabrina Sadgui – ©2023 BFM Bourse