The Paris Stock Exchange finished slightly up 0.32% on Wednesday after an initially flat session that gathered momentum as Wall Street opened as investors welcomed the release of stronger-than-expected economic indexes.
The flagship index gained 21.56 points to 6,677.97 points, helped by the bullish trend on Wall Street. Indeed, the American market was driven by the Nasdaq with a strong technological color, up 0.55% around 17:15 GMT.
The Paris market had already closed slightly higher on Tuesday, waiting for central banks but slightly perturbed by a rebound from the Covid-19 epidemic in China.
The day was punctuated by the release of several data: in the euro zone, the economy contracted in November, but a little less strongly than in October, according to the PMI flash activity index released on Wednesday by S&P Global. In France, activity levels fell for the first time since February 2021.
However, these PMI indices are “better than expected” and show “a great resilience of European economies”, estimated with AFP Clémence de Rothiacob, manager of Richelieu Gestion.
“However, the markets did not explode to the upside,” during a session that took place with “low volume” before a Wall Street Thanksgiving holiday, the analyst notes.
He calls on “newcomers from China” – whose capital on Tuesday recorded a record daily number of Covid-19 contaminations in nearly three years -, pushing away the prospect of an imminent reopening.
Finally, the analyst believes that these less negative than expected indices could provide “new arguments for the European Central Bank” to raise its key rates “stronger, faster” to counter inflation, which the markets do not want.
Investors also remained cautious ahead of the 20:00 release of the minutes of the latest US Federal Reserve meeting.
Banks in shape
Faced with the possibility of the ECB stepping up its monetary tightening, “bank shares have logically gone up,” Ms de Rothiacob said.
The share of Société Générale thus gained 1.09%, to 24.08 euros. The company specialized in payments Worldline has signed the second performance of the CAC 40, with a rise of 1.88%, to 44.97 euros.
The car reverses
The values of the automotive sector, one of the most sensitive to economic conditions, fell after the publication of the PMI indices.
Carmaker Stellantis loses 1.40% to 14.48 euros, as do equipment makers Valeo (-1.37% to 17.63 euros) and Plastic Omnium (-0.89% to 14.49 euros ).
Savory results for Elior
The Elior stock, which has lost more than 60% of its value since January 1, offered a strong rebound on Wednesday (+8.32% to 2.58 euros), the best performance of the broader SBF 120 index.
The collective catering group, still struggling to recover pre-Covid profitability, expanded its losses in 2021-2022 and is counting on its commercial dynamism to confirm a recovery jeopardized by the high inflation that is affecting its margins. It announced that it suffered a hefty net loss of €427 million during its staggered fiscal year that ended in late September.