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In the wake of Wall Street, which ended in the red on Monday, the Paris stock exchange opened lower on Tuesday (-1.58%), despite the optimism expressed by the French government regarding the end of the health crisis. The CAC 40, which had finished stable on Monday (+0.01%), was at its highest level since 7 November 2000.
“Inflation is still in the news this morning with the release of China’s PPI [Producer Price Index],” which came in “higher than expected due to commodity pressures,” said John Plassard, head of investment at Mirabaud. According to official figures released on Tuesday, the Producer Price Index in China rose in April to its highest level in nearly four years, symbolising the post-Covid recovery in the industry.
The Chinese consumer price index, the main gauge of inflation, rose by a more modest 0.9% year-on-year in April, compared with 0.4% a month earlier when analysts were expecting a 1% increase. The level of activity in France was 6% lower in April than before the Covid-19 crisis, and should be 4% lower in May than the same level, the Banque de France’s monthly business survey indicated on Monday evening.
On the health front, Prime Minister Jean Castex said on Monday that France was “in the process of emerging from the crisis caused by Covid-19 in a sustainable manner”. With the reopening of cafes, restaurants and shopping centres scheduled, the government is optimistic towards the soon ending of the crisis, which will help the economy.
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