(News Bulletin 247) – The Paris Stock Exchange is attempting a rebound the day after a complicated session. The CAC 40 rose by 0.3%, supported by TotalEnergies which benefited from the rebound in oil prices.
The Paris Stock Exchange is trying to come to its senses the day after a difficult session. The CAC 40 rose by 0.3% to 7,297 points, after dropping 1.40% on Monday evening with the sudden fall of Société Générale and the rise in oil prices.
The rise in barrel prices will therefore enter into the debates of the American Federal Reserve, already well animated by the persistence of inflationary pressures. And to make matters worse, the Fed will have to integrate the recent surge in black gold prices into its monetary decision expected for Wednesday evening.
The November North Sea Brent contract exceeds $95 per barrel. That of October on WTI listed in New York advanced 0.9% to 91.43 dollars per barrel. Black gold prices are at their highest levels since November 2022.
“Central bankers should take into account this recessive effect of the rise in the price of oil, while being concerned about its diffusion on the setting of companies’ sales prices, with the risk of further complicating the disinflation dynamic” , underlines Sebastian Paris Horvitz, of LBPAM.
Moreover, the Banque de France indicated that the rise in commodity prices would, in addition to pushing up inflation, penalize the country’s growth in 2024 and 2025.
TotalEnergies far from the pump
The rise in barrel prices towards $100 for the two global benchmarks logically benefits oil and oil services stocks. And in particular the heavyweight of the Parisian index TotalEnergies which increased by 1.6% to 62.97 euros and is now moving close to its historical records at 63.04 euros.
Excluding the CAC 40, Colas rose 52.4% to 173 euros and is close to the price of 175 euros offered by its parent company Bouygues to buy back the shares of its subsidiary that it does not yet own with a view to withdrawing it. of the Stock Exchange.
SMCP plunges another 27%. The owner of the Maje and Sandro brands is suffering on the stock market after lowering its targets for 2023 due to a deterioration in the ready-to-wear sector in Europe.
On the foreign exchange market, the euro is stable against the dollar at 1.0693 dollars before the start of the meeting of the American Federal Reserve.
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