(News Bulletin 247) – The index rose slightly at mid-session this Thursday. Danone is stepping back after announcing the broad outlines of the new phase of its “Renew” strategic plan.

The Paris Stock Exchange has been sailing in less troubled waters in recent days, after suffering last week. The CAC 40 gained 0.9% at mid-session this Thursday, to 7,641 points, a variation which follows a decline of 0.8% on Wednesday and two sessions of moderate increases, Monday and Tuesday.

The markets remain expectant, still monitoring French politics. In a detailed note this Thursday, UBS looked at different scenarios for the legislative elections. In terms of implications for equity markets, the Swiss bank does not expect the risk premium on French securities to fade in the coming days.

But the decline in French shares “could present a buying opportunity if the election result shows that (Marine) Le Pen’s party did not meet expectations”, believes the Swiss establishment.

“It is the more disruptive political agenda that he is proposing that is driving up risk premiums, and his weak electoral result could therefore allow for a reassessment,” he adds.

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Danone leaves the market hungry

In Switzerland, the Swiss National Bank (SNB), the central bank of the country with four official languages, has decided to lower its rates for a second time since the start of the year, bringing its main key rate to 1.25%.

This measure was “probably more influenced by the appreciation of the franc over the last two months than by a perceived easing of domestic inflationary pressures”, underlines Capital Economics. “In our opinion, it is unlikely that the SNB will reduce its rates further this year, because domestic demand is already starting to recover and inflation will remain at its current level,” adds the think tank.

Investors will be watching this afternoon for the publication of new weekly unemployment claims in the United States and, on Friday, for the release of the PMI indices, which measure private sector activity, in many countries.

On the value side, Danone is sanctioned by the market (-4.7%) after unveiling the new part, for 2025-2028, of its Renew strategic plan. But the announced objectives do not seem to have any particular flavor for investors.

Bic plunges 9.9%. The specialist in stationery, razors and lighters has lowered its growth forecast for 2024 due to a more difficult US lighter market than initially expected.

On other markets, the euro fell 0.2% against the dollar to 1.0729 dollars. Oil is barely moving. The August contract on Brent from the North Sea advanced 0.22% to 85.26 dollars per barrel while that of the same maturity on WTI listed in New York was stable at 81.58 dollars per barrel.