The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Eric PIERMONT)
The wind of optimism died down on the Paris Stock Exchange on Tuesday morning, despite the increase in economic activity in the eurozone in January after six months of contraction, with prudence appearing to regain the upper hand pending the verdict on the new results of the company.
The CAC 40 star index gained 0.15% to 7,043.64 points by 10:25 am. The Paris rating, which has been booming since the start of the year like other European markets, climbed 0.52% on Monday and 0.63% on Friday after a choppy air pocket on Thursday.
The Purchasing Managers’ Index (PMI), which takes into account the manufacturing and services sectors, rose to 50.2, after 49.3 in December in the Eurozone, and is at a seven-month high.
The deconfinement of the Chinese economy and the prospects of a recovery in activity with the Lunar New Year celebrations, the hopes of seeing both central banks more moderate in their monetary tightening and a less pronounced economic slowdown than expected served as a springboard for the shares at the beginning of the year.
But “company results will decide whether the latest gains are sustainable,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
In particular, the results of the American groups Johnson and Johnson, 3M, General Electric and Microsoft are expected this Tuesday.
In the tech sector, including Amazon, Meta, Microsoft, Google and Spotify, announcements of job cuts have been linked in recent days.
“Companies are cutting staff, investors are buying shares”, but “job cuts and cost-cutting measures may not be entirely positive, they could be a sign of a slowdown in demand”, warns the Mrs. Ozkardeskaya.
In France, private sector activity contracted for the third consecutive month in January due to a decline in manufacturing output, according to an initial estimate by the agency S&P Global.
According to the respondents, this drop is due to the increase in interest rates and the high level of inflation which “encouraged customers to cut expenses”.
On Monday, the president of the European Central Bank (ECB) called for “significant” new rate hikes.
Traders are now seeing the key ECB rate rise to around 3.30% in June, from 2% now.
This anticipated trajectory contrasts with that of the US central bank (Fed), from which the market expects only half a point more over the same horizon.
Another record year for Interparfums
The Interparfums group reported on Monday its turnover up 26% to 706.6 million euros in 2022, a “new record year”, its business benefited from an increase in prices and a favorable trend in the euro/dollar parity . The stock returned 0.96% to €61.60 at around 10:35am.
Xavier Niel running to detect M6’s TNT frequency
Entrepreneur Xavier Niel, owner of the telecommunications group Iliad (Free) and shareholder of various newspapers, is a candidate to take over a DTT frequency as part of the renewal of those of TF1 and M6. This application, submitted through his company NJJ Project 5523, addresses the current frequency of M6. The TF1 share rose by 0.55% to €7.31 and that of M6 fell by 0.45% to €15.57.
Carmat aims to break even in 2027
The Carmat company, which took over the commercial installations of its Aeson artificial heart in France in November 2022, has announced that it is aiming for a turnover of between 10 and 13 million euros this year and to break even in 2027. The stock lost 3.79% to 11.43 euros at around 10:30
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