Paris Stock Exchange Experiences Decline Amid Economic Uncertainty
The Paris Stock Exchange is facing challenges as the CAC 40 index closed down 1.05% at 7,350.37 points, marking its third consecutive session of losses. The decline is attributed to disappointing corporate results in France and concerns surrounding major US technology companies' investments in artificial intelligence. The SBF 120 index also fell by 0.96%, reflecting a broader trend across European markets, with the DAX and FTSE 100 indices down by 0.93% and 0.61%, respectively.
Macroeconomic data has added to the market's tension, with inflation figures in France, the Eurozone, and the United States showing a slight increase. The unpredictability surrounding the upcoming American presidential election has further contributed to investor caution. The US PCE index indicated a year-on-year inflation rise of 2.1% in October, suggesting that the Federal Reserve may maintain a steady course during its upcoming meeting on November 7.
Corporate Highlights: Societe Generale and BNP Paribas
Despite the overall market downturn, Societe Generale stood out with an impressive 11.3% increase in its stock price, reaching €26.38. The bank's strong performance is attributed to a 10.5% rise in invoicing and a remarkable 53% increase in figures for the first nine months of the year. CEO Slawomir Krupa emphasized the solid results and significant improvement in the third quarter, particularly in retail banking, which has seen profits multiply by 3.4.
Conversely, BNP Paribas faced investor disappointment, with its stock dropping 4.2%. Although the bank reported a 7.8% increase in turnover, analysts expressed concerns regarding its consumer credit and car leasing sectors. The bank maintained its outlook for modest growth, aiming for a net profit of approximately €11.2 billion.
As the Paris Stock Exchange prepares for a calm session on November 1st due to the All Saints' Day holiday, investors will look ahead to key economic indicators from the US, including the unemployment rate and ISM manufacturing activity index.
