(News Bulletin 247) – The Paris Stock Exchange is moving in contact with 6,900 points, investors are convinced that the latest statistics in Europe will encourage the European Central Bank to maintain its key rates on Thursday. The CAC 40 rose 0.6% at midday.

The Paris Stock Exchange is trying to continue its rebound. After hesitating at the start of the course, the CAC 40 progressed by 0.64% to move in contact with 6,900 points to 6,894 points. On Monday, the flagship Parisian index closed up 0.5% after testing the lowest of the year, around 6,770 points.

However, the latest statistics call for caution, particularly in Europe. In the morning, investors took note of “the strongest contraction” in economic activity in the euro zone “since November 2020”. S&P Global revealed this Tuesday a flash PMI index which fell to 46.5 in October, compared to 47.2 in September. For the fifth consecutive month, the index is below 50, which means that economic activity in the euro zone is in contraction.

But as is common in the markets, bad news is interpreted as good. This new signal of a slowdown in economic activity in the euro zone suggests a less aggressive posture from the European Central Bank, two days before its monetary policy decision.

The trend is also supported by the easing of tensions in the bond compartment. Sovereign debt yields continue to fall, particularly on the American 10-year which is moving at 4.857% after peaking at 5%, the highest since November 2007.

Operators attributed this spectacular movement to comments from well-known investors, notes Saxo Bank in its morning note. “Bill Ackman tweeted that he covered his short bond positions because of ‘too much risk in the world’ and because ‘the economy is slowing faster than recent data suggests.’ Likewise Bill Gross said it was buying futures contracts on SOFR interest rates (overnight financing rate, editor’s note), anticipating a recession by the end of the year,” explains the bank.

Note that the evening will be lively with publications from Microsoft, Alphabet and Visa in the United States after the stock market.

Hermès and Virbac exceed expectations

On the values ​​side, the publication of the Hermès group was welcomed (+2.3%). The luxury saddler delivered a more than satisfactory performance, with growth above expectations despite a slowdown in its activity in Asia.

Another publication appreciated by the markets, Virbac which rebounded by 12.6%. The veterinary laboratory, which had greatly disappointed in recent months, raised its annual objectives after a significant rebound in sales in the third quarter.

On the other hand, Interparfums did not win the support of investors. The specialist in licensed perfumes lost 2.9% after delivering cautious outlooks for the rest of the financial year, citing a slowdown in the group’s dynamics since mid-summer.

On the foreign exchange market, the euro lost 0.4% to 1.0631 dollars. On the oil side, investors are assessing the situation in the Middle East. The barrel of Brent from the North Sea for December increased by 0.5% to 90.28 dollars per barrel. That of December on WTI listed in New York appreciated by 0.4% to 85.86 dollars per barrel.