The Paris stock exchange was calmed on Thursday by slowing US inflation in October, to the benefit of risky assets.
Consumer prices rose 7.7% in October year-on-year in the US, less than in September and less than expected. In one month, prices increased by 0.4%, even less than expected.
“Consumer prices in the United States are showing signs of easing”, write the experts of the broker Aurel BGC, noting that “consumers no longer seem to accept price increases, especially in goods”.
“The disinflationary movement is confirmed, but it will be slow and, in the short term, will exert strong pressure on company margins”, they temper.
An obsession with the market this year, inflation had also become one of the main themes of the campaign for the mid-term elections, which took place on Tuesday in the United States, and the final results of which were not yet known.
Recognizing the decline in US inflation, the market is starting to think that the US central bank could slow the pace of rate hikes at its next meeting in mid-December.
As a result, on the bond market, the yield on the French 10-year fell to 2.49%, compared to 2.69% the day before. Its German counterpart (Bund) fell to 2.01% versus 2.17% on Wednesday evening.
And rate-sensitive tech stocks have been boosted.
STMicroelectronics, Dassault Systemes and Worldline gained over 7%, Capgemini over 5%.
ESG controversy over teleperformance
Shares in Teleperformance fell by more than 30% before being suspended at the company’s request following the announcement of an investigation into possible labor law violations in Colombia, its third country of establishment.
The group has assured that the management of the branch in Colombia has “always developed the company in compliance with the law” and has announced a share buyback program for 150 million euros.
“Their press release was not considered very convincing,” Charles De Riedmatten, equity manager at Myria AM, told AFP. “Investors are kind of fed up with Teleperformance’s ESG issues. They want the company to take these issues more seriously.”
Trading in the shares will resume on Friday when trading opens, the company said.
Crédit Agricole is doing less than expected
The French bank Crédit Agricole suffered a drop in its net profit of almost 10% in a year in the third quarter, to all the same 2 billion euros and after a historic year 2021. Its share has lost 2.52% at € 9.46.
Engie benefits from the courses
Engie gained 3.95% to € 13.90 after raising its targets for the year 2022 and posting higher results in the third quarter, driven by high energy prices and the growth of most of its activities. .
pan / reference / eb