The Paris stock exchange is attempting to recover after a 1.6% decline, currently up by nearly 0.9%, bolstered by gains from major companies. Investors remain cautious due to potential new tariffs from the U.S. and mixed economic indicators, including a slight improvement in the eurozone manufacturing PMI. The French PMI also shows a moderate contraction. Meanwhile, China’s manufacturing sector is experiencing growth, and several companies in France have announced strategic developments and acquisitions.
Paris Stock Exchange Seeks Recovery Amid Economic Concerns
After experiencing a challenging start to the week with a decline of 1.6% yesterday, the Paris stock exchange is making strides to recover today, showing an increase of nearly 0.9% this morning, hovering around 7860 points. This positive movement is largely supported by notable gains from CapGemini (+2.4%), Dassault Systèmes (+1.9%), and Schneider Electric (+1.8%).
Investor Caution Amid Trade and Economic Indicators
Despite the upward trend, investors are faced with heightened uncertainty as Donald Trump is set to announce new tariffs targeted at countries that impose tariffs on U.S. businesses and maintain a trade surplus with the United States.
Concerns regarding trade policies are compounded by worries about the broader economic landscape. Today’s release of the eurozone PMI has drawn particular attention from market participants. The HCOB PMI index for the eurozone manufacturing sector, compiled by S&P Global, has improved for the third consecutive month, rising from 47.6 in February to 48.6 in March. This suggests only a modest contraction, marking the mildest downturn in the sector since January 2023.
It’s important to note that a reading below 50 indicates a contraction in activity, while a figure above signifies growth. Despite a continued decline in new orders, manufacturers are reporting an uptick in activity for the first time in two years. Although this growth is marginal, it represents the strongest performance recorded at the close of Q1 since May 2022.
In France, the HCOB PMI index for the manufacturing sector also reflects a similar trend, rising from 45.8 in February to 48.5 in March, indicating a moderate contraction—the mildest point in the ongoing downturn that has persisted for 26 months.
This morning, eurozone inflation figures were anticipated, followed by the U.S. manufacturing ISM index later in the afternoon, which is expected to indicate a return to contraction in March, according to a consensus by Reuters.
Meanwhile, in China, the manufacturing sector has shown signs of accelerating growth in March, confirming the ongoing economic recovery within the country. The official data from the National Bureau of Statistics (NBS) revealed that the Chinese manufacturing purchasing managers’ index (PMI) reached 50.5 in March, an increase of 0.3 percentage points from the previous month, marking its highest level since March 2024.
On the corporate front in France, Eiffage has announced a strategic agreement via its Belgian subsidiary Smulders to acquire HSM Offshore Energy, a company specializing in integrated engineering, construction, and installation solutions for offshore wind projects.
Additionally, Alstom has confirmed the extension of its contract with the Port Authority of New York and New Jersey (PANYNJ) for operations and maintenance services of the AirTrain airport shuttle at JFK International Airport.
Eurofins Scientific has successfully finalized the acquisition of Synlab’s clinical diagnostic operations in Spain, with the transition completed on March 31.
Lastly, Oddo BHF has reiterated its ‘outperform’ rating and a price target of 35 euros for Bureau Veritas, projecting that the group is likely to commence the year positively, driven by three divisions exhibiting double-digit growth (M&O, Industry, Certif).