2023-10-19 17:01:57
The Paris Stock Exchange closed down 0.64% on Thursday, reaching its lowest level since January, the persistence of geopolitical tensions weighing on investor morale, before a speech by the president of the American central bank.
The flagship CAC 40 index lost 44.62 points to 6,921.37 points, its lowest closing level since the beginning of January. On Wednesday, the Parisian rating had already finished at its lowest closing level since mid-March following losing 0.91%.
If “the real impact of the conflict” between Israel and Hamas on the market is “still contained”, there is “investor fear” which pushes them to avoid risk taking, says Christopher Dembik, strategy advisor at investment by Pictet AM.
Since the start of the war between Israel and Hamas, triggered on October 7 by the unprecedented deadly attack by the Palestinian Islamist movement on Israeli soil, the markets have been watching for the risk of a regional conflagration of the conflict, once morest a backdrop of diplomatic ballet for try to avoid an escalation.
“Oil is the first asset that might react” to war “but the reality is that as long as the situation is contained, so are prices,” continues the analyst.
Investors will also keep an eye on the speech by Jerome Powell, head of the Federal Reserve (Fed) following the European markets close.
On the values side, Technip Energies dropped 13.75% to 19.50 euros following the publication of an investigation by the daily Le Monde implicating the group in a Russian gas project despite “European sanctions following the Russian invasion in Ukraine” which “require him to interrupt his participation”, according to the newspaper.
Renault disappointed investors (-7.33% to 33.43 euros), following a lower than expected increase in its turnover in the third quarter of 2023, mainly due to the increase in its prices.
Pernod Ricard, which saw its turnover fall by 8% in the first quarter of its staggered financial year but should recover by the end of the year, climbed 4.76% to 166.15 euros and raises the title of Rémy Cointreau (3.34% to 119.20 euros) in passing.
Stellantis fell 3.60% to 18.10 euros following announcing on Wednesday a vast renewal of its range of utility vehicles, a commercial “offensive” intended to take the place of world number one in this sector from its competitor Ford.
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