Paris stock exchanges closed 0.68% higher on Monday, buoyed by China’s economic reopening, slowing eurozone inflation and speculation that the US economy could slow without falling into recession (AFP/ERIC PIERMONT )
Paris stocks closed 0.68% higher on Monday, buoyed by China’s economic reopening, slowing inflation in the eurozone and speculation that the US economy could slow without falling into recession.
The CAC 40 star index rose 46.41 points to 6,907.36 points, surpassing 6,900 points for the first time since February 18, 2022, before the Russian invasion of Ukraine. It finished up 1.47% on Friday and ended a week up 5.98%, its best performance since November 2020, when the effectiveness of the Covid-19 vaccines was announced.
Investors were pleased with the latest data on the US labor market, with slowing growth in average hourly wages, as well as a decline in the inflation rate in the euro area.
“So far, the European and US economies have been more resilient than expected,” comments Vincent Juvyns, strategist at JPMorgan AM, who encourages the theory of a soft landing for the US economy.
However, it qualifies and anticipates “a stagnation of the economy at best, which is not a very exciting scenario”.
Furthermore, “there is no reason to claim victory over inflation in Europe”, which could explain some volatility in bond rates. “Core inflation,” which excludes energy and food prices, “continues to rise,” adds Juvyns.
A speech by Federal Reserve Chairman Jerome Powell on Tuesday and Thursday’s release of the CPI inflation gauge for December in the US will provide further guidance to investors. Many are hoping the Fed will be less harsh in the coming months.
Plastic: Danone sued
NGOs want a judge to force French yoghurt and water bottle multinational Danone (-1.03% to €49.14) to overcome its addiction to plastic that often fails in nature, in a summons consulted by AFP on Monday .
Crossing at the top of the gondola lift
Shares of Carrefour posted the second best performance of the session at the CAC 40, gaining 4.40% to 16.72 euros, after jumping 1.84% on Friday. Bank of America on Friday raised its 2023 stock recommendation from “neutral” to “buy,” according to financial agency Bloomberg. The casino is also favored by the American bank, which on Monday allowed the price to rise by 2.36% to 11.30 euros.
LVMH in the lead
The title of the world’s number one luxury brand closed at an unprecedented level, at 759.60 euros, surpassing the previous record set in January 2022. The price rose by 1.44% on Monday, benefiting as the entire luxury sector luxury of reopening the Chinese economy.