The flagship CAC 40 index came close to its all-time record in session before retracting and returning to balance at the close (-0.01% to 7,344.96 points), after six sessions in the green.
The market "is rather stalling", which surprises Mikael Jacoby, head of continental brokerage at Oddo, given that the "rise in oil prices plays the game of inflation", he commented for AFP.
Oil prices have risen since the announcement of unexpected production cuts by OPEC countries and their allies, reviving inflationary fears and would argue for further increases in key central bank rates.
Thus, the stock markets are, according to the expert, currently caught in "two counter-currents", one concerning inflation, which remains high and calls for action to raise central bank rates and the other, concerning the economic slowdown, which would induce a pause in monetary tightening.
After the deceleration in the United States of price increases in February and the continued decline in US manufacturing activity in March, US industrial orders, published on Tuesday, weakened more sharply than expected in February to -0.7%.
Investors are thus "in a wait-and-see position" also characterized by "anecdotal trading volumes," says Jacoby.
With the stock market closed on Friday and Monday in Europe, "we probably have a busy and nervous week ahead of us" after the Easter weekend, says the specialist.
L'Oréal offers itself the luxury of Aesop
L'Oréal, the world's number one cosmetics company, announced on Tuesday the signing of an agreement with Natura & Co for the acquisition of Aesop, the Australian luxury cosmetics brand, valued at $ 2.525 billion. The stock gained 1.18% in Paris.
Alstom red lantern
Alstom shares (-5.53% to 23.74 euros) finished at the bottom of the CAC 40 index, penalized by its cyclical nature after four sessions of increase.
© 2023 AFP