The Paris stock exchange favored caution on Wednesday as it awaits final US midterm election results and new US inflation data expected on Thursday.
The flagship CAC 40 index dropped 0.38% to 6,416.79 points at 10:30 am, the day after a small 0.39% increase.
According to the latest trends in US mid-term elections, Democrats would only grant Republicans a narrow majority in the House of Representatives, while suspense remains for the Senate.
“From an investor’s point of view, a Republican victory in both houses is a good result for equities. And even a divided government, which we will certainly have, is preferable to a democratic victory,” said analyst Ipek Ozkardeskaya of Swissquote Bank.
Be that as it may, market participants above all expect to be reassured about inflation that central banks are trying to curb tightening financial conditions.
Then on Thursday they will be watching closely the US consumer price index for October to try to predict the next steps in US central bank (Fed) policy. Since March, it has raised its key rates to curb economic activity while ensuring that a recession is avoided.
The market is convinced that the Fed will continue to raise its rates in the coming months, but less quickly than it did this year.
Veolia aims for 2022
Veolia (-0.79% to 23.72 euros) announced a turnover up 15.7% in nine months, driven by all its activities (water, waste, energy), and shows confidence in the following, aiming at the high end of its annual goals.
Bonduelle confirms his goals
Canned and frozen vegetable specialist Bonduelle (+ 0.17% to € 11.70) reported “growing” turnover in the first quarter of its staggered 2022-23 fiscal year, an increase driven mainly by “revaluation rates” . “It maintains its annual business growth target between + 8% and + 11%” at constant exchange rates and scope.
Growth in turnover for Orpea
The group of private clinics and Ehpad Orpea (-0.99% to 8.23 euros) posted on Tuesday a turnover in the third quarter up 6.4%, driven by its international activities, which offset the situation in France, marked from the crisis opened by the publication of the investigative book “Les Fossoyeurs”.