This Tuesday morning, the CAC40 reached a new historic high at 8,058 points at the opening. Despite a slight moderation at the end of the morning, the flagship index of the Paris stock market remains in positive territory.
The Paris stock market hits a new historic record at the start of the session
The CAC 40, the flagship index of the Paris stock exchange, started Tuesday on an optimistic note by hitting a new historic record at the opening. The index reached 8,058 points in early trading.
This performance comes in a relatively uncertain market context, with investors remaining attentive to the latest macroeconomic developments. The American inflation figures expected today will be particularly scrutinized to try to decipher the Federal Reserve’s timetable for monetary policy.
According to the FactSet consensus, inflation should stand at +0.4% compared to the previous month and at +0.3% excluding food and energy. In annual comparison, these figures would be +3.1% and +3.7% respectively. These data will be decisive in anticipating the timing of the Fed’s first rate cut, currently scheduled for June.
Despite the uncertainties linked to inflation and monetary policy, several values stand out on the rise on the Paris market. This is particularly the case for Teleperformance, which rebounded by 5% to 89 euros, supported by favorable analyzes despite a downward adjustment of the price target by Société Générale. Analyst consensus remains largely positive on the stock, with 14 buy recommendations and no sells.
For its part, Maisons du Monde gained 6% to 4.37 euros following the presentation of its annual results and its new strategic plan. Although faced with a declining furniture market, the group limited the impact on its operating margin, which stood at 4.1% compared to 5.5% a year earlier, demonstrating its ability to adapt. .
Contrasted performances within the CAC 40
While some stocks are doing well, others are experiencing downward pressure. This is the case of Nexity, which fell by almost 10% to 9 euros, penalized by the declarations of the Minister of Housing, Guillaume Kasbarian, who is not considering new tax measures in favor of the sector. This announcement constitutes a hard blow for the real estate developer, whose growth prospects could be affected.
However, hopes for a lull on the inflation front and a soft landing for the economy are fueling investor optimism. Indeed, even if Europe and the United States still risk a recession in 2024, its scale could prove to be more limited than analysts initially feared.
Furthermore, the massive injections of liquidity by central banks in recent years and valuations that have become more reasonable after the 2022 correction are also encouraging investors to return to equities, particularly European ones which were lagging behind Wall. Street.
Finally, the reopening of China and the end of the zero-Covid policy constitute significant support for luxury values, which are very dependent on Chinese demand and which represent a significant part of the Parisian stock market.
In conclusion, despite an uncertain economic context, the Paris stock market continues to demonstrate resilience by setting new records. If certain stocks like Téléperformance and Société Générale are doing well, others, like Nexity, are suffering from a lack of government support. The next American inflation statistics will be decisive for the future trend of the markets.
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