The star CAC 40 index yielded 55.90 points to 7,252.75 points around 10:15 a.m. On Wednesday, the Parisian rating fell 0.37%, falling 80 points below its record on Thursday.
In New York, the three major indexes fell 2% or more on Tuesday and yields on 10-year Treasury bills climbed 14 basis points to 3.95%, their highest in almost three and a half months.
The evolution of interest rates continues to occupy the minds of investors who are trying to anticipate the next steps of US monetary policy.
They had hoped to see the US Federal Reserve (Fed) lower its key rates as early as this year, but statistics revealing the solidity of the economy despite nearly a year of rate hikes have undermined this assumption.
“Everything leads us to believe that monetary conditions will have to remain more restrictive and for a long time to come,” confirms Sebastian Paris Horvitz, director of research at La Banque Postale AM.
The minutes of the last Fed meeting are in the sights of the markets, they will read them after the European close in order to gauge whether or not a 50 basis point hike in the Fed’s key rates is plausible during the next meeting in March.
“The possibility of seeing central banks more severe than expected risks putting a spoke in the wheel in risk-taking”, comments Sebastian Paris Horvitz, director of research at La Banque Postale AM.
Business creations in France fell by 5.1% over one month in January, after having fallen by 3.3% in December and the business climate improved slightly in February, “mainly” thanks to better business outlook in services, according to INSEE.
Stellantis at full speed
The automotive group born from the merger of PSA and Fiat-Chrysler has published a new record net profit of 16.8 billion euros for 2022, an increase of 26% for its second year of existence. Stellantis shares rose 2.32% to 16.24 euros, at the top of the CAC 40.
Danone all in green
The agri-food giant Danone published a net profit halved in 2022, dropping below the billion euro mark, weighed down by the rise in the cost of raw materials, the withdrawal of part of its activities from Russia, and the deployment of its reorganization plan.
But apart from these exceptional events, the company’s financial results are “above expectations and the 2023 objectives are reassuring” according to analysts at Oddo BHF.
The title rose by 1.47% to 53.08 euros
Korian fall
The action of the Korian retirement home group plunged 15.51% to 8.05 euros after the publication of its results on Tuesday, which revealed a drop of more than 60% in its net profit in 2022.
Oddo BHF analysts note a “margin squeeze” and are worried about Korian’s profit outlook for 2023.
Plastic Omnium takes the suction
The automotive supplier Plastic Omnium rose 2.69% to 17.15 euros. He benefited from the rebound of the automotive market at the end of 2022 in China and North America and was optimistic for the year 2023.
Mixed covivio
The real estate group Covivio saw its adjusted recurring net profit increase by 5% in 2022, but expects an equivalent drop in 2023 due to asset sales. Its action lost 4.19% to 59.40 euros.