(News Bulletin 247) – The Parisian index ended Friday’s session up 0.58%. This allows it to contain its weekly decline to 0.2%.

The CAC 40 ends the week on a good note. The Parisian index ended Friday’s session with an increase of 0.58% to 7,255.01 points. This allows it to limit its weekly decline to 0.2%.

The Parisian index fell a little this Friday, after the publication of PMI indices, leading indicators of private sector activity, of poor quality in the euro zone. In November, the composite PMI, which brings together services and manufacturing activity, fell to 48 in October, according to S&P Global, after an index of 50 last month.

This decline had not at all been anticipated by economists who were counting on an index of 50, a figure which marks the border between an expansion and a contraction of activity. These disappointing data suggest more significant key rate cuts from the European Central Bank.

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Towards greater rate cuts from the ECB?

“The weakness of the PMI indices published this morning confirms the current difficulties. While European growth remains weak, the ECB should continue to reduce its rates,” comments Olivier Dubs, manager at JP Morgan Private Bank. “The figures published today give reason to consider a reduction of 50 basis points (0.5 percentage points) in the ECB’s key rates in December,” he adds.

These disappointing data caused the euro to fall against the greenback, with the currency of the monetary union losing 0.7% against the dollar to 1.0398 dollars. This fall in the euro could, however, provide a factor of support to European indices during the session.

As is the relative trend on Wall Street, where the S&P 500 is up slightly (+0.1%) shortly before the Paris close.

On the value side, Thales lost 2.9%, showing the biggest drop in the CAC 40 while the group is the subject of an investigation for corruption in France and the United Kingdom. The company responded by saying it disputed the “allegations brought to its attention.”

Banks and cyclical stocks looked gloomy, potentially penalized by poor economic indicators in the euro zone. BNP Paribas lost 2.2%, Société Générale 2.6% and Crédit Agricole SA 1.7%.

Oil is rising a little. The January contract on North Sea Brent gained 0.77% to $74.80 per barrel while the December contract on WTI listed in New York gained 0.9% to $70.75 per barrel.