(News Bulletin 247) – The CAC 40 rose significantly at mid-session this Tuesday, the market taking note of the fall in inflation in the monetary union while dissecting company publications.

The Paris Stock Exchange is currently showing a nice increase this Tuesday. The CAC 40 rose 1.14% to 6903.20 points at mid-session, with investors having to dissect a battery of indicators as well as several company publications.

In the euro zone, inflation fell to 2.9% year-on-year in October compared to 4.3% in September.

“Eurozone inflation fell more than expected again in October, falling below 3% for the first time since mid-2021. The European Central Bank (ECB) will keep this news at bay. Core inflation (excluding food and energy prices, Editor’s note) remains above 4%, or twice the targeted inflation level. The ECB needs to see wage inflation slow, which could take another six month”, points out Mark Wall, chief economist at Deutsche Bank.

The evolution of GDP in the zone was also disappointing, contracting by 0.1% when economists were counting on stability. “Although this result is not as bad as the 0.2% contraction we expected, the overall situation shows that the eurozone is in trouble,” concludes Capital Economics.

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The yen collapses after Bank of Japan announcements

In terms of monetary policy, the Bank of Japan opted for the status quo on its rates and announced a measure to relax control of bond yields, now qualifying its previous cap of 1% on the bond yield to 10 years of simple “reference”.

But “this decision was less aggressive than anticipated by the market and caused the yen to fall”, relates Ipek Ozkardeskaya, analyst at Swissquote Bank, cited by AFP. As a result, the yen actually plunged, losing 1.4% against the euro.

On the value side, Bouygues gained 4.2% following nine-month results that exceeded analysts’ expectations. Stellantis grew by 2.4% after reporting a turnover better than expected by analysts thanks to an improvement in sales volumes.

Conversely, Thales fell by 2.4%, the group having reported slightly disappointing order intake in the eyes of the market.

Kering (-0.1%) also remains away from the overall rise in the market, penalized by Goldman Sachs which lowered its advice on the stock from “buy” to “neutral”.

On other markets, the euro gained 0.35% against the dollar to 1.0656 dollars. Oil prices are trending slightly upward. The January contract on North Sea Brent advanced 0.95% to $87.18 per barrel while the December contract on WTI listed in New York gained 1% to $83.1 per barrel.