The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/ERIC PIERMONT)
The Paris Stock Exchange closed 0.52% down on Wednesday, closing four consecutive sessions higher, somewhat cooled by economic indicators and geopolitical risk.
The CAC 40 star index fell by 34.44 points to 6,607.40 points. In the previous four sessions it had gained 3.28%, including 0.49% on Tuesday.
Since the low at the end of September, the index “has recovered 1,000 points”, also underlines Frédéric Rozier, manager of Mirabaud, who would therefore not be surprised by a “period of consolidation”, where the indices would stand still or would give up some terrain, especially as the next few days promise to be light in terms of news.
In Wednesday’s session, he notably noted “the return of worries about the economic slowdown” after several days in which investors had been delighted by the decline in US inflation.
In particular, US industrial production decreased slightly in October (-0.1%) and that of September was revised sharply downwards.
Some US retailers, such as Target, were also disappointed, demonstrating that the consequences of inflation on consumption are not over yet.
Conversely, retail sales in October were in line with expectations, up 1.2%.
Investors also paid attention to the risk of an escalation of the war in Ukraine after a missile strike on Polish territory, reassured after NATO officials denied Kiev’s allegations of a Russian missile fire against Poland.
Alstom convinces investors
The integration of Bombardier Transport has once again led the railway manufacturer Alstom to record losses (21 million, slightly less than in 2021), but the management believes that everything is going as planned, above all because the data on business, order collection and profitability are improving. The share rose by 7.16% to 25.59 euros. Since 1 January, however, it has fallen by 18.03%.
The defense sector led
Companies with defense businesses have been noticed by investors in the geopolitical context. Thalès gained 2.62% to 119.25 euros and Dassault Aviation 1.39% to 146.10 euros.
The car at the bottom of the pack
Car manufacturers were affected by the return of fears about the level of economic activity. Renault lost 3.70% to €32.04, Michelin 1.43% to €26.51 and equipment supplier Valeo 5.43% to €18.29.
Air France raises funds but melts on stock exchange
The share of the airline group Air France-KLM fell by 10.51% to 1.26 euros, after the announcement of an issue of bonds convertible into shares for an amount of 300 million euros.
Air France could also see its cabin crew go on strike this holiday season.
Salary increase at Orpea
The new CEO of Orpea (-6.54% to 7.49 euros), the group of private rest homes, in poor financial condition and once again in the sights of research, announced upcoming salary increases for employees and promised to pursue a substantial recruitment plan.