(News Bulletin 247) – The Paris Bourse has put an end to its series of four sessions of decline, driven by the results of Bouygues or Axa. The CAC 40 ended up 0.25% on Thursday evening.
The Paris Stock Exchange posted its first increase of the week this Thursday evening, and thus put an end to four consecutive sessions of decline. Company publications fueled the recovery of the CAC 40, which ended up 0.25% at 7,317.43 points, after hitting a session high of 7,357.68 points (+0.80%).
The Parisian market has taken note of the recent good economic statistics which leave the field free for central banks to carry out more significant monetary tightenings than previously anticipated by investors. This trend was confirmed by the minutes of the last monetary policy meeting of the American Federal Reserve (Fed).
Especially since the job market in the United States remains robust. Weekly listings fell to 192,000 last week, a four-week low versus market expectation of 200,000. As for US growth, gross domestic product increased by 2.7% at an annualized rate compared to the previous three months, a rate lower than the first estimate which was 2.9%. Not enough to see the Fed ease off on its rate hikes.
The situation is identical in the euro zone. The European Central Bank has no reason to take a break from its restrictive policy. Inflation in the euro zone rose by 8.6% year on year in January.
Axa assures, Nexity collapses
Numerous results and company announcements enlivened the Parisian market and its flagship index, the CAC 40.
Axa ends up 3.4% after announcing annual accounts above expectations. The insurer also said it expects to exceed its strategic plan target of average annual growth in net earnings per share of between 3% and 7% between 2020 and 2023 and announced the launch of a share buybacks of up to 1.1 billion euros.
Another value of the CAC 40 that stands out: Bouygues published better annual results than expected by the market and delivered its roadmap to square the margins of Equans, which it bought from Engie last October. .
But it is Stellantis which finished at the top of the CAC 40 this Thursday evening (+3.6%) still carried by its excellent annual results delivered on Wednesday.
On the other side of the spectrum, EssilorLuxottica fell 4.2%, after announcing a disappointing operating margin for 2022.
Outside the CAC 40, Nexity fell by 9.1% while its profitability will be put to the test in 2023 because the rise in construction costs will be more difficult to pass on due to the drop in real estate purchasing power.
Fnac Darty limited its gains to 7.65% following an article by BFM Business reporting that Daniel Kretinsky, who owns 20% of the group, would like to acquire the 24% held by the German Ceconomy and potentially withdraw the group from the side. Ceconomy is not a seller, but this information revives the speculative potential of the stock.
Sopra Steria grew by 7.7% thanks to solid 2022 accounts and a 2023 outlook hailed by the markets. Among other things, the SSII anticipates organic growth in its turnover of 3% to 5%.
On the other markets, the euro dropped 0.2% against the dollar at 1.0589 dollars. The oil takes on colors. The North Sea Brent contract advanced 1.6% to 81.88 dollars a barrel while the WTI contract listed in New York also rose 1.6% to 75.14 dollars a barrel.
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