The Paris Stock Exchange retreated on Friday following a week so far in the green, wondering regarding the pace of rate hikes by the American and European central banks which might prove to be faster than expected by the markets.
At 11 a.m., the flagship CAC 40 index dropped 0.71% to 7,313.89 points. The day before, the Parisian place had registered a record in session and closed up 0.89%.
Published Thursday, the producer price index (PPI) in the United States, which rose more strongly than expected in January, tends to confirm that inflation remains tenacious in the country, and that the American Federal Reserve (Fed) might once once more harden and prolong its monetary tightening.
“The Fed will go higher and longer in its monetary tightening than the market continues to hope,” summarizes Neil Wilson, analyst at Finalto.
St. Louis Fed Chairman James Bullard’s remarks preparing investors for “a long battle once morest inflation” “drove the most optimistic” from trading rooms, he added.
In January, investors were hoping that the Fed would take a break from its monetary tightening cycle and even start cutting rates at the end of the year.
In the euro zone, Isabel Schnabel, member of the executive board of the European Central Bank pointed out in an interview with the financial information agency Bloomberg published on Friday, “a risk that inflation will prove to be more persistent than what is currently estimated by financial markets”.
Hermès continues to shine
The luxury group announced new records with an increase in its net profit of 38% to 3.4 billion euros and its sales to 11.6 billion euros (+29.2%). The action, however, dropped 1.06% to 1,722.50 euros around 11:00 a.m. Citi analysts point to the lack of a special dividend despite its record cash position and high valuation, according to financial news agency Bloomberg.
GTT, Teleperformance and Eutelsat disappoint
The company specializing in liquefied gas transport and storage systems GTT said it expects activity to increase in 2023 thanks to a strong order book. However, its profitability target for 2023 is below analysts’ expectations. The action fell 7.55% to 97.90 euros around 10:50 a.m.
Eutelsat shares fell 4.79% to 6.76 euros following the satellite operator warned that “the impact of sanctions once morest certain Russian and Iranian channels will be felt mainly in the second half”.
The Teleperformance share fell 2.82% to 255.20 euros, penalized by organic growth in the fourth quarter below expectations, despite net income up 15.8% in 2022, to 645 million euros. euros and a “solid” outlook for 2023.
Ubisoft reassures
In the third quarter of its staggered 2022/23 financial year, the French video game publisher achieved a turnover up 12.8%, to 772.5 million euros, in line with expectations. Something to relieve investors following the announcement in January of a downward revision of its turnover growth target for 2022-2023, with sales down “by more than 10%” compared to the year former. The action rose 4.80% to 20.63 euros.
Record loss and debt at EDF
The electricity producer has increased its debt to a record level of 64.5 billion euros, at the end of a dark year weighed down by the setbacks of its nuclear fleet but also by its forced contribution to the “tariff shield” of the French . The group goes into the red with a very heavy net loss of 17.9 billion, once morest a profit of 5.1 billion in 2021. The EDF share was treading water (+0.08% to 11.87 euros).
Safran benefits from the resumption of air traffic
Safran (-0.24% to 133.78 euros) took full advantage of the recovery in air traffic and the appreciation of the dollar, publishing a turnover up by a quarter in 2022. For 2023, the group expects “at least 23 billion euros” in revenue.
