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The Paris Stock Exchange regained some height on Tuesday, thanks to cheap buying. After a fall of almost 3% yesterday, which already followed three consecutive weeks of decline, the bedroom 40 closed this session with a slight rise of 0.51%, to 6,116.91 points, despite the change in attitude on Wall Street. The S&P 500 and Nasdaq Composite fell 0.4% shortly before the close in European markets, while gaining as much as 2% and nearly 3% respectively in early trading.
Towards a slowdown in inflation in the United States?
Questions about the Fed’s interest rate path haven’t gone away and market participants will be watching April US consumer price statistics tomorrow. Analysts expect the increase to slow to 8.1% year-on-year, after a 40-year high of 8.5% in March.
At the same time, the lack of a foreseeable outcome to the conflict in Ukraine and the slowdown in Chinese foreign trade cloud the outlook for the world economy. Especially since Beijing does not seem to be considering abandoning its “covid zero” policy, which is bringing many Chinese cities and businesses to a standstill.
Rebound in luxury, which weighs heavily on the index
The four components of luxury, namely LVMH, kering, The real Y Hermeswhich fell yesterday to the lowest level of the year (due to the announcement of new restrictions in China and the confirmation of the economic slowdown in the world’s second largest economy, a large market for these companies), have largely contributed to the rebound in the Cac 40 given its weight in the index (around 22%), as well as, in another sector, Airbus.
The planemaker, which announced it received 98 new orders in April and delivered 48 planes, rose nearly 1% today. Societe Generale upgraded its recommendation on the stock to “buy” from “hold” and raised its price target from €126 to €132.
Euroapi (+5%) was sought again, brokers recommended the purchase of the title of specialist in active pharmaceutical ingredients. Deutsche Bank, which highlights the group’s leading position in a structurally growing market, has started monitoring the “buy” value to target 20 euros. Exane BNP Paribas and Oddo BHF have started coverage of the “outperformance” stock.
Stellantis gained 1% while Berenberg is buying the shares. Apart from the Franco-Italian manufacturer, it is “purchase” at BMW and General Motors, and “maintenance” at Ford, Volkswagen, Tesla and Renault.
Among other analyst notes, Stifel began coverage ofAlstom to “hold” with a target price of 23 euros. The share of the manufacturer of railway material is revalued by 1.23%.