The Paris Stock Exchange gained 0.26% on Tuesday, waiting on the eve of the vote on motions of censure tabled by the left and the far right which could bring down the government of Prime Minister Michel Barnier.
The flagship CAC 40 index gained 18.53 points and finished at 7,255.42 points. The day before, the star index stood still, gaining only 1.78 points, at the end of a seesaw session.
It is “a waiting session”comments Florian Roger, head of investment strategies at BNP Paribas.
“The market has in mind that the French political situation will come back to the fore on Wednesday”he continues.
The debate followed by a vote on the motions of censure tabled by the left and the far right against the government of Michel Barnier will begin Wednesday at 4:00 p.m.
Censorship has already been demanded by 325 deputies, far more than the 288 needed to bring down the Prime Minister and his team.
On the bond market, “French debt is holding up well”believes Florian Roger. The ten-year benchmark yield reached 2.90% compared to 2.91% the day before at the close and its German equivalent 2.05%, compared to 2.03% on Monday.
Moreover, “at the end of the week, the employment figures in the United States will provide more information on what the Federal Reserve (Fed) will do in December”during the next meeting of its monetary policy committee, continues Florian Roger.
This publication will come after the victory in the American presidential election of Republican Donald Trump, whose program is considered inflationary. The market is also wondering if this factor “will be taken into account by the Fed”specifies Florian Roger.
Today, “the market estimates the probability of a rate cut by the American monetary institution in December at 71.3%”he explains.
Saint-Gobain on the rise
The materials giant advanced 1.89% to 86.12 euros after announcing its strengthening in the building insulation market in Turkey, via the acquisition of the rock wool producer His Yalitim, and the opening of a factory specializing in construction chemicals, a priority area of the group.
Edenred let go
Edenred shares ended the day down 2.5% to 30.40 euros after confirming the downward revision of its forecast for gross operating surplus (Ebitda) in 2025 to at least 10%, taking into account of a potential new future capping of commissions on meal vouchers in Italy.
Worldline, market rumors denied
On Monday, Worldline shares jumped more than 14% after the Reuters news agency claimed that several private equity funds, including Bain Capital, would evaluate the situation of the French group specializing in electronic payments, with a view to a possible offer.
On Tuesday, Worldline returned 10.49% to 6.79 euros, after the Bain Capital fund denied the rumors.
Veolia joins forces with a Saudi group
Veolia (+0.26% to 27.40 euros) will join forces with a Saudi recycling company for the management of household, industrial and hazardous waste in Saudi Arabia, the French group announced on Tuesday during a Emmanuel Macron’s visit to this country.
Forvia changes head
The French automotive supplier fell 4.84% to 7.55 euros after the announcement of the replacement of Patrick Koller as general manager by Martin Fischer, until recently responsible for the German equipment manufacturer ZF.