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AOF France/Europe closing analysis – Renewed optimism after the decline in US inflation

(AOF) – European equity markets ended a session that was once again particularly volatile. Paradoxically, investors reacted very well to disappointing inflation figures. Admittedly, the rise in prices has decelerated, but less than expected. It came out in April over one year at 8.3% against 8.5% in March. The consensus gave it at 8.1%. Traders seem to see the glass half filled after the sharp decline in the indices observed recently. The CAC 40 jumped 2.5% to 6,269.73 points, while the Euro Stoxx 50 rose 3.23% to 3,640.65 points.

Salvatore Ferragamo gained nearly 10% to 14.83 euros, supported by quarterly results above expectations and the presentation of an ambitious five-year strategic plan. The new CEO Marco Gobbetti, former boss of Burberry, intends to finally bring the iconic Italian brand back into the modernity defined by the desires of “millennials”. The stakes are high. In recent years, Ferragamo has significantly underperformed a booming luxury sector, both in terms of sales, profits and… stock market prices.

The session proved particularly volatile for Alstom. If the railway giant gained up to 9% at the very start of the morning, it finally lost 5.16% to 21.85 euros. The group unveiled annual results broadly in line with expectations, but they nevertheless remain in the red. In addition, investors are still worried about the costs associated with the integration of Canadian Bombardier Transportation, as well as the future of the 20% stake in the Russian company TMH.

Saint-Gobain gained 1.91% on the Paris stock exchange, to 52.89 euros per share, while press rumors report pressure from Bluebell Investment to push the group to reorganize. According to the Financial Times, which had access to letter exchanges dating back to last December, the activist fund calls in particular on the Frenchman to replace its president, Pierre-André de Chalendar, CEO of the group for ten years, with an independent president during of the general meeting of shareholders in June.

The macroeconomic figures of the day

The consumer price index in the United States increased by 8.3% in April on an annual basis, after +8.5% in March. The consensus was for +8.1%. The “core” index, i.e. adjusted for the most volatile elements such as energy and food, posted an increase of 6.2%, against a consensus of 6% and after +6.5 % in March.

Around 5:30 p.m., the euro gained 0.09% to 1.0543 dollars.

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