The Paris Stock Exchange is looking to resume its forward march on Friday despite the economic and monetary concerns that stalled it the day before, as investors are being guided by the prospects for improvement in China.
At around 11:25 am, the star CAC 40 index recovered 0.63% to 6,995.43 points after falling 1.86% the day before, breaking with the early year euphoria marked up to that point by 11 closures in green out of 13 sessions.
Worries about the US economy rocked world markets Thursday, which remain focused on inflation, which US and European central banks have been trying to counter since last year by raising their key rates.
In Germany, producer prices fell in December for the third consecutive time. Despite the large share of energy price increases in the index, it fell 0.4% from the previous month.
“So it could very well be that some of the high inflation is market-driven and doesn’t need to be contained by higher interest rates,” said RoboMarkets analyst Jürgen Molnar.
However, US and European central banks continue to support further rate hikes and warn that they could stay high for some time to bring inflation back towards the medium-term target of 2%.
In the United Kingdom, inflation affected retail sales, which fell in December, disappointing the expectations of economists who were betting on a small increase.
Investors cling to expectations of an improvement in the Chinese economy.
“The latest statistics from China showed that growth momentum was starting to improve slightly,” said Sebastian Paris Horvitz, an analyst at LBPAM.
The defense is back on track
Thales share (+2.29% to 120.70 euro) recorded, like the day before, the largest increase in the CAC 40. Safran share too (+1.52% to 129.16 euro) defended well.
Orpea resists despite an uncertain future
Shares of private nursing homes Orpea rose 1.73% to 6.95 euros at around 11:15 am despite the failure of discussions on the restructuring of its debt between a consortium of investors led by the CDC and a group of financial lenders which owns approximately 50% of the company’s unsecured debt.
Orpea announced that it “will continue discussions” with this group of creditors “to reach an agreement on a restructuring plan”, which envisages a capital increase of between 1.3 and 1.5 billion euros.