The Paris Stock Exchange closed slightly lower by 0.22% on Thursday after starting the year with a bang, slightly disturbed by US economic data suggesting further significant monetary tightening in 2023.
The CAC 40 star index fell 14.93 points to 6,761.50 points. In the first four sessions of the year it grew by 4.44%.
Paris’ rating had opened on the downside, investors rallied profits after Wednesday’s 2.30% jump, before swinging around equilibrium in the latter part of the session.
The data was once again very robust: private employers in the US created significantly more jobs than expected in December, despite the slowdown in economic activity caused by the US central bank (Fed) and its hikes rate hikes to fight inflation which has reached levels not seen for 40 years.
Released on Wednesday, the minutes of the Federal Reserve’s (Fed’s) last monetary policy meeting, held in mid-December, highlighted that “employment remains the most important indicator” for the Fed, according to Nicolas Leprince, manager of Edmond de Rothschild AM.
None of the institute’s officials considered a decision to lower key rates in 2023 possible, but on this point “the market does not believe in the Fed”, and expects it to start lowering rates slightly during the second half, underlines the ‘ing. Leprince.
Friday’s big shot will be the official US jobs report.
But the CAC 40 has been much more dynamic than the New York Stock Exchange since the beginning of the year, where the three major New York indexes have lost ground after posting their worst performance since 2008 last year.
“Europe, through its exports, is more sensitive to China”, and therefore reacts more to signs of reopening of the economy, “convincing” despite the explosion of cases of contamination by Covid-19 in the country, continues the manager.
raw materials ahead
Investors turned to oil stocks, including Technip Energies (+3.43% to 15.70 euros). This energy project and services provider announced on Thursday the five-year extension of a contract in Kuwait.
Also up were CGG (+6.88% to 0.65 euros) and Vallourec (+2.59% to 11.91 euros), as well as the mining companies ArcelorMittal (+3.10% to 26.48 euros), Aperam (+2.49% to 32.13 euros) and Eramet (+2.37% to 82.20 euros).
Interparfums nose in the air
The Interparfums group (+4.48% to 60.60 euros) has raised its targets for 2022 for the fourth time, counting on an increase of “over 25%” in turnover in one year and improved profitability, while showing caution for 2023.