New decline (-0.26%) on the Paris Stock Exchange

Published on : 23/08/2022 – 19:28

Paris (AFP) – The Paris Stock Exchange failed to rebound on Tuesday and remained below the 6,400 point mark, risk aversion setting in ahead of a conference of major central bankers and in the face of the deterioration of indicators economic.

The CAC 40 index fell 16.72 points to 6,362.02 points, suffering its third decline in a row (-0.26%), following unfavorable statistics.

Economic activity in the euro zone contracted once more in August in the private sector, down for the second month in a row, weighed down by Germany and France once morest a background of still high inflation.

In France, overall activity fell back for the first time in eighteen months, undermined by a sharp reduction in manufacturing production and the slowdown in the service sector.

At the same time, “the monetary policy of the American Federal Reserve (Fed) continues to dominate investors’ buy or sell decisions”, and the speech by Jerome Powell, head of the Fed, at the end of the week at the conference of central bankers in Jackson Hole (Wyoming), “should provide more clarity,” said Konstantin Oldenburger of CMC Markets.

“The recent decline was notably triggered by fears that the Fed is not deviating from its aggressive tightening. What Powell will say, or not say, during his speech will certainly set the tone for global markets at least from Friday. “, adds the analyst.

There is also the “return from vacation of investors who take a little profit following the rise in the CAC 40 index in July and August”, notes for his part, Thierry Claudé, manager at Kiplink Finance.

The weakness of the euro, which fell below parity once morest the greenback, undermined stocks exposed to exports, such as L’Oréal which lost 2.16%, Dassault Systèmes (-2.41%) or Pernod Richard (-1.96%).

Biggest increase in the CAC 40, TotalEnergies (+3.24%), heavyweight of the rating, for its part benefited from the rise in crude prices.

© 2022 AFP