2023-12-13 17:23:06
Paris (AFP) – The Paris Stock Exchange ended slightly down 0.16% on Wednesday, with investors mainly awaiting the conclusions of the meeting of the American Central Bank, due to a lack of new elements during the session.
Published on: 13/12/2023 – 18:23
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The flagship CAC 40 index fell 12.33 points to 7,531.22 points, following being up most of the day. It peaked at 7,579.25 points during the session, very close to its absolute peak reached on Tuesday.
But the closing record of April 21, 2023, at 7,577 points, still stands.
“Today’s session is a continuation of Tuesday’s,” said Adrien Roure, multi-asset manager at Indosuez. Like the day before, the most important indicator concerned the evolution of prices in the United States.
And like Tuesday on consumer prices, wholesale prices, paid by producers, came out in line with expectations.
They remained stable over one month in November, while analysts expected a slight increase of 0.1%.
The most anticipated event on Wednesday by the markets falls following the Paris close, with the conclusions of the last meeting of the year of the American Central Bank.
If market players are certain that it will maintain its key rates in the range of 5.25%-5.50%, “the tone of Jerome Powell’s speech” as well as the “projections” on interest rates to come will be scrutinized, according to Mr. Roure.
“We think that the market went a little quickly in the downward revaluation of key rates” in the coming months, which resulted in a drastic fall in government interest rates, continues the manager.
In France, the interest rate on the 10-year loan, the benchmark maturity, fell to 2.71%, compared to 2.77% on Tuesday at the close and a peak at 3.60% at the end of October. . This is close to the lowest levels since April.
“The Fed must both make progress in disinflation”, while maintaining a more restrictive discourse, which can “surprise the markets”, he describes.
In addition to the American Central Bank on Wednesday, investors are also preparing for the meeting of the European Central Bank and that of England on Thursday.
Carrefour bears the brunt of Argentina
Several companies linked to Argentina suffered on the stock market following the announcement of the shock devaluation of the peso by the new president. One peso will now be worth $800, up from $366.52 at Tuesday’s close.
In France, the price of the Carrefour distribution group, which generates around 3.75% of its turnover in Argentina, fell by 5.37% euros to 16.12 euros.
Orange also lost 3.21% to 10.80 euros, in line with the 3.29% drop in the Spanish Telefonica.
A takeover bid for SII
The SII engineering group jumped more than 30% to 69.50 euros on Wednesday following the announcement of a public purchase offer led by a concert of shareholders including the Huvé family, which already holds the majority of capital. The offer may lead to a compulsory delisting procedure. The takeover bid is made at a price of 70 euros per share and the company was valued at just over a billion euros before this offer.
The initiators of the public purchase offer wish to be “accompanied by a professional financial partner” and to alleviate “the regulatory and administrative constraints and the costs linked to the listing”.
© 2023 AFP
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