2023-09-22 08:01:06
The Paris Stock Exchange lost further ground on Friday, continuing the trend following the meeting of the American central bank which reinforced the scenario of high interest rates for a long time.
The CAC 40 index lost 0.53%, or 36.32 points, to 7,177.58 points around 9:50 a.m. On Thursday, it fell significantly by 1.59%.
Over the week, the Parisian rating shows a drop of 2.73% at this stage.
“Central bank week is coming to an end,” and the “essential message from central bankers on both sides of the Atlantic was to tell us that monetary policies must remain restrictive for some time to come to ensure that “inflation is converging towards targets”, comments Sebastian Paris Horvitz, director of research at LBPAM.
A majority of the members of the monetary policy committee of the American Federal Reserve (Fed) are only counting on two rate cuts in 2024, two fewer than anticipated in June.
This surprised investors and pushed sovereign bond yields to new multi-year highs.
Around 9:50 a.m., the ten-year French interest rate fell to 3.25% following a peak of 3.32% reached the day before, a new highest since 2012.
Sebastian Paris Horvitz recalls that “the dilemma that has been with us for months is still not resolved, namely can we achieve a soft landing of economies or not?”
Furthermore, the Bank of Japan (BoJ) extended its ultra-accommodating monetary policy on Friday, unsurprisingly, despite inflation in the country which remains well above its 2% target and the great weakness of the yen once morest to the dollar.
Also on the macroeconomic agenda are the September PMI activity indicators for France, Germany, the euro zone, the United Kingdom and the United States.
In France, private sector activity experienced its sharpest decline in September since November 2020, a fall which “mainly reflects an unfavorable environment for demand”, according to the Flash PMI index published Friday by the S&P firm. Overall.
Solutions 30 collapses
The subcontractor for telecoms and energy operators Solutions 30 published a net loss of 14.4 million euros in the first half of 2023, higher than that recorded over the same period in 2022. Its action fell 15.58% to 2.23 euros.
Continuity at Total, the odds are flat
The board of directors of the TotalEnergies group will propose, at its next general meeting in May 2024, the renewal of the mandate of CEO Patrick Pouyanné at the head of the company for almost ten years. The action fell slightly by 0.63% to 61.49 euros.
Eramet on the rise
The French mining group Eramet (+2.63% to 72.10 euros) announced Thursday the sale of its Norwegian subsidiary Eramet Titanium and Iron (ETI) for $245 million (nearly 230 million euros) to the British group. Ineos Enterprises.
1695373558
#Paris #Stock #Exchange #falls #week
