(News Bulletin 247) – The Paris Stock Exchange continues a fourth session of increase (+0.4%), on the eve of highly anticipated data on inflation in the United States and Europe. The CAC 40 closes on 7300 points, supported among others by Renault, sought after having raised its annual objectives.

Unlike the previous week, the Paris Stock Exchange is heading towards a faultless performance. The CAC 40, stuck at the gates of 7300 points on Wednesday evening, found the impetus sufficient to cross this threshold and end the day at 7312.73 points thanks to an increase of 0.36%.

The Paris star index even picked up 0.9% shortly before 1:00 p.m. before gradually reducing its lead in the afternoon. Investors have taken note of the salvo of macroeconomic indicators on the agenda of the day, including those published in the United States and which confirm the solidity of the world’s leading economy.

Gross domestic product (GDP) growth was revised to 2% year on year in the first quarter in the United States, from 1.3% previously. The strength of US growth came as a surprise since it exceeded the 1.6% expected by some economists. On the employment front, there too the signals are green with new weekly jobless claims which contracted to 239,000 against 264,000 claims the previous week.

These figures support the US Federal Reserve in its desire to toughen the tone of its monetary policy. The President of the American Federal Reserve (Fed), Jerome Powell, notably opened the door on Wednesday to two new increases in key rates, during the annual forum of the European Central Bank (ECB) in Sintra, Portugal.

With restrictive statements from major central banks, “investor discussions naturally revolve around the trade-off between growth and inflation, and the possibility of price persistence,” said Stephen Innes of SPI Asset Management.

It is therefore in this context that the market will follow the publication of data on inflation in Europe and the United States for the month of June on Friday.

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Renault at the helm

But first, it was business news that focused investors’ attention on Thursday.

Renault was at the helm of the CAC 40 (+5%) throughout the session. The automaker raised its 2023 targets thanks to a better-than-expected first half, thanks to the success of recent launches, the Austral in particular.

Engie grew by 4.1%. The energy group announced an agreement with the Belgian government to extend two nuclear power plants with an allocation of risks and costs, for a total liability of the company towards Belgium of 23 billion euros. This agreement puts an end to a long period of uncertainty on this file.

“This is an important clarifying event for the stock which should support a strong revaluation over the next few days/months and open up a number of strategic options for Engie and potential buyers,” JP Morgan said in a statement. a note quoted by Reuters.

SES-imagotag continues to win back the market

Excluding the flagship index, SES-imagotag rebounded 12.6% after providing new information to short seller Gotham City Research, which accused it of accounting irregularities. The group requested certificates from its auditors to demonstrate that the transactions with the Chinese group BOE did not constitute revenue loops. The group has, in passing, warned that its first half would be the best in its history.

Imerys rose 4.2% after announcing it would mine the UK’s largest lithium deposit, boding well for its future revenue in materials for electric vehicles.

As for small and mid-caps, ESI Group soared 47.3%, approaching the price of 155 euros per share, proposed by the American Keysight to buy the French specialist in virtual prototyping.

Carpet Casino

The main declines of the day, they are very marked. Casino slumped 32.3%, after the retail group warned that massive dilution awaited its shareholders as part of its upcoming financial restructuring.

Orpea dropped 12.2%. The retirement home operator’s shareholders and creditors have overwhelmingly but not unanimously approved the company’s bailout plan.

On other markets, the euro lost 0.3% to 1.0880 dollars. Oil, for its part, is down slightly. The contract on Brent from the North Sea for the month of August yields 0.3% to 74 dollars a barrel, while that of the same expiry on WTI listed in New York also loses 0.3% to 69.36 dollars per barrel.