The Paris Stock Exchange is up 0.33% in early trading on Friday, still driven by November, its second best month of the year, ahead of indicators on economic activity in Europe and the United States.
The CAC 40 index rose by 24.45 points to 7,335.22 points at 09:45. For the week, it is up 0.56% and is headed for its third consecutive weekly gain.
“The markets celebrate the stronger-than-expected slowdown in inflation in the eurozone and the United States since the end of the summer, while at the same time, economic growth is not collapsing. Equity markets rebounded by nearly 10% in November and long-term interest rates have returned to their mid-September levels,” describe analysts at La Banque Postale AM.
Energy prices, one of the main drivers of inflation in the eurozone, are contributing significantly to this slowdown. Even the new production cuts decided by the oil-producing countries and their OPEC+ allies are not enough to lift oil prices on Friday, with the Brent crude oil barrel still hovering around $80.
In November, the CAC 40 advanced by 6.17%, its best monthly progression since January.
After two sessions focused on inflation, investors will shift their focus to economic activity with the final estimates of the PMI indicators for the manufacturing sector in the eurozone in the morning, and in the United States in the afternoon.
Investors are still hoping for rapid interest rate cuts by the European Central Bank, freed by weaker inflation and in response to the economic slowdown.
“At present, the money market expects the European Central Bank to lower rates as early as March 2024. Just a few weeks ago, it was scheduled for June 2024. However, we will need to pay attention to Christine Lagarde’s speech at 2 p.m., which could dampen investors’ enthusiasm,” said Christopher Dembik, investment strategy advisor at Pictet AM.
Pierre et Vacances experiences losses
The leading European leisure residences company, Pierre et Vacances, incurred a net loss of 20.06 million euros in 2022/2023, weighed down by exceptional charges related to the sale of Senioriales, the senior residences, according to a statement on Friday. The stock fell by 4.07% to 1.32 euros.
Apollo flies in consort with Air France-KLM
Air France-KLM and Apollo Global Management have agreed for the fund to increase its investment in a new subsidiary backed by the airline group’s Flying Blue loyalty program to 1.5 billion euros, the airline announced on Thursday.
The stock rose by 1.27% to 11.78 euros.
Euronext CAC40.
