AOF France/Europe closing analysis – The CAC 40 closes above 7,000 points

(AOF) – The main European stock markets ended up. They benefited this week from the publication of several inflation figures confirming its slowdown in developed countries. After being reassured by the US figure on Thursday, investors were also reassured by French inflation in December. In Paris, the automotive sector suffered from price cuts by Tesla. The CAC 40 ended on an increase of 0.69% to 7,023.50 points, bringing its gains over the week to 2.40%. The EuroStoxx 50 went up 0.60% to 4,151.33 points.

Renault et Stellar posted the largest falls in the CAC 40, with respective declines of 3.81% to 14.22 euros and 1.45% to 37.135 euros respectively, after the announcement of Tesla’s decision to proceed with a further price cut . Two of the best-selling models of the American manufacturer become eligible in France for the ecological bonus of 5000 euros. The threat of a price war with European manufacturers is becoming clearer, while the latter are focusing their efforts on the electric segment. The same goes for the Germans. Volkswagen, Daimler, Mercedes-Benz, Porsche et BMWred lanterns of the DAX.

OVHCloud

gained 0.74% to 15.00 euros, the specialist in cloud computing services having confirmed its 2023 objectives after a start to the year qualified as “very good” by its management. In the first quarter, which ended at the end of November, the technology group achieved a turnover of 216 million euros, up 15.4%. The quarterly sales of the group founded by Octave Klaba increased by 11.7% in organic data and excluding direct impacts linked to the incident in Strasbourg.

Air France KLM finished at the top of the SBF120 with a rise of 5.99% to 1.5035 euros. UBS announces today that it now recommends the Air-France KLM share for Buy against Neutral previously and raises its price target from 1.75 euros to 2 euros. The analyst says the airline’s earnings are supported by capacity discipline, the resumption of business travel, an increase in travel from Asia, a segment in which the group is strong, as well as through lower fuel prices and cost control.

The macroeconomic figures of the day

The euro area recorded a deficit in trade in goods with the rest of the world of 11.7 billion euros in November 2022, compared to a deficit of 3.9 billion euros in November 2021, according to Eurostat. The consensus stood at 21.1 billion.

In November 2022, seasonally adjusted industrial production increased by 1.0% in the euro area and by 0.9% in the European Union, compared to October 2022, according to estimates from Eurostat, the office European Union statistics. The consensus stood at +0.5% for the euro zone.

The rise in consumer prices amounted to 5.9% in December in France, compared to December 2021, while these prices were up 6.2% in November year on year. This slowdown in inflation reflects that of energy prices (+15.1% after +18.4%) and, to a lesser extent, services (+2.9% after +3%).

Investors also learned other good news: in the United States, the consumer confidence index measured by the University of Michigan exceeded expectations. It came out in January at 64.6 against a previous estimate and consensus of 60.5. It was 59.7 in December.

Around 5:50 p.m., the euro lost 0.44% to 1.0803 dollars.