2023-06-21 08:44:50
The Paris Stock Exchange opened lower on Wednesday, marked by persistent inflation in the United Kingdom and a soft economic recovery in China, pending speeches from representatives of the American central bank.
The star CAC 40 index fell 0.23% around 10 a.m., or 17.13 points to 7,273.89 points. The day before, it had fallen by 1.01%, already weighed down by concerns related to China.
The market was marked by the persistence of soaring prices in the United Kingdom.
Inflation in this country, the highest of the G7 countries, did not decline in May as analysts expected, remaining at 8.7% over one year compared to the previous month.
The figure makes a Bank of England interest rate hike all but certain for Thursday, despite the cost of living crisis and anemic economy.
“The Bank of England should raise its rates once more by 25 basis points, to 4.75% and leave the door open to further increases by the end of the year”, estimates Xavier Chapard, member of the La Banque Postale AM’s research and strategy team.
On the side of the United States, investors are “waiting to hear Jerome Powell” the chairman of the American Federal Reserve (Fed) Wednesday evening before the House of Representatives and Thursday before the Senate, according to Neil Wilson, analyst at Finalto.
Tuesday’s housing starts data “suggests the Fed may be planning a few more key rate hikes,” Wilson said.
Moreover, China remains a concern for investors.
“The fact that the Chinese authorities are only doing the minimum to guarantee the country’s economic recovery is preventing a real return of confidence in China,” said Xavier Chapard, member of the research and strategy team at La Banque Postale AM.
Partnership between Airbus and ST Microelectronics
Airbus (+0.33% to 131.58 euros) and the Franco-Italian manufacturer of electronic components STMicroelectronics (-0.26% to 44.45 euros) announced on Tuesday a partnership to develop semiconductors intended for systems electronics requiring high power, in order to progress in the electrification of aircraft.
Engie pursues its diversification strategy
The French energy company Engie (-0.92% to 14.18 euros) announced on Tuesday to acquire the activities of BTE Renewables in South Africa, thus doubling its production capacity of renewable energies in the country, in accordance with its strategy of diversification into solar and wind power.
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