The CAC 40 hovered around equilibrium for a long time on Friday, but closed in the red. The Paris Bourse remained cautious due to Wall Street’s slowdown and a pharmaceutical sector weighed down by the probable appointment of anti-vaccine activist Robert F. Kennedy Jr. to the Trump administration.
Market trend
On Friday, the CAC 40 failed to preserve the 7,300-point threshold. The Paris Bourse’s star index will have passed a large part of the session oscillating. The headwinds were too strong to finish with gains. The European stock markets were weighed down by the pharmaceuticals sector, which fears the probable appointment of Robert F. Kennedy Jr. to the US Department of Health.
The opening of US markets also failed to generate any new momentum. Inflation figures and a speech by Fed boss Jerome Powell put an end to the euphoria that had persisted since Trump’s election. Convinced of a further rate cut in December, economists began to have doubts, and Wall Street was now cautious. As a result, the CAC 40 saw no grounds for hope this session, and continues to slide with its fourth consecutive weekly loss.
Indexes in France and around the world
| CAC 40 | – 0,57% | 7,269.63 points |
| SBF 120 | – 0,54% | 5,518.30 points |
| DAX | – 0,27% | 19,216.04 points |
| FTSE 100 | – 0,09% | 8,064.32 points |
| Nikkei | + 0,28% | 38,642.91 points |
| Dow Jones* | – 0,61% | 43,485.33 points |
| Nasdaq* | – 1,96% | 18,732.29 points |
| *index closed at the close of European stock markets | ||
Fact of the day
Jerome Powell cooled the mood this Thursday evening with his speech. The Chairman of the US Federal Reserve spoke about the prospects for a rate cut. In particular, he stressed that the US economy was not sending “no signal that we need to hurry up and lower rates.” A statement that sent shockwaves through the market.
Analysts were already burned by the slight acceleration in PPI production prices (+2.4%), which confirmed the 2.6% rise in consumer prices. “Inflation is approaching our long-term target of 2%, but it’s not there yet. We are committed to finishing the job”.added Jerome Powell. While the central bank is now concentrating on controlling unemployment, inflation appears to be slowing down.
All these elements add up to questions about a potential return to inflation with Donald Trump’s protectionist agenda. Against this backdrop, economists are beginning to have doubts about a possible cut in key rates this December. According to the FedWatch by CME GroupeWhile 82% anticipated a further reduction before Jerome Powell’s speech, they are now more divided, with only 55% expecting it.
Stocks in focus
The Top
Investors were a little slow to deconstruct the publication of Vallourec. In the end, they decided to take the stock to the top of the SBF 120 with a gain of 6.36%. On Friday, the seamless steel tube specialist released its quarterly results. The French group, which works in particular with the oil and gas industry, reported a slight decline in net income to 73 million euros (- 3.9%).
Third-quarter sales were also down 21.7% on last year (894 million euros). “This decrease is explained by lower average selling prices in the Tubes segment in North America, as well as less favorable iron ore prices and lower sold production.”explains the company in its press release. Investors were more focused on other news to boost the share price.
In particular, the company confirmed its targets for 2024. For the eighth consecutive quarter, the group also reduced its debt by 124 million euros over the last three months, to 240 million euros. The century-old company had narrowly avoided bankruptcy in 2021 thanks to a restructuring program (3,000 job cuts and closure of factories in Germany). Vallourec CEO Philippe Guillemot has announced that a proposed dividend will be submitted to the Annual General Meeting in May, which would be the first share of profits returned to shareholders in a decade.
The Flop
Sanofi announced this Friday further investment in Lyon to produce an antibody for transplant patients and another for type 1 diabetes. However, it was not this news that caused the company’s shares to fall on the Paris Bourse, making it one of the biggest decliners on the CAC 40 (-3.27%).
The pharmaceutical group followed the same dynamic as its European counterparts after the announcement of Robert F. Kennedy Jr’s likely appointment to the U.S. Department of Health. This news was a blow to the entire pharmaceutical sector. In Europe, the Franco-Austrian Valneva also lost 6.84% (biggest drop on the SBF 120), AstraZeneca gave up about 3%, while Novo Nordisk down more than 5%.
The former environmental lawyer, nephew of former President John Fitzgerald Kennedy, is best known for his numerous conspiracy theories about Covid-19 vaccines. The 70-year-old activist also links vaccines to autism. A former candidate in the Democratic primary, he eventually ran as an independent before finally rallying behind Donald Trump last August.
Number of the day
+ 2,1%
On Friday, the European Commission announced that inflation should continue to fall, reaching 2.1% in 2025 (+ 2.4% this year). This brings inflation closer to the European Central Bank’s (ECB) target of 2%. It also forecasts GDP growth of 1.3%, compared with 0.8% this year.
Monday November 18 agenda
Next week is set to kick off with a session featuring no significant news releases. The main focus will be on the various speeches from the European Central Bank (ECB) on the economic outlook for the eurozone. Monday’s session could also see statements from the G20 Summit.
Editorial recommendation
JCDecaux presented fairly positive quarterly results, with organic growth of 10%. However, the world’s number one outdoor advertising company failed to convince investors, who remain disappointed by its outlook for the end of the year. Find out more about JCDecaux’s share price advice.