The heads of French and Japanese manufacturers Nissan and Mitsubishi unveil their new agreement on February 6, 2023 in London (AFP / Daniel LEAL)
The Paris Stock Exchange ended in sharp decline on Monday, the rebound in yields on the bond market but also the geopolitical tensions between China and the United States having weighed on the trend.
The star CAC 40 index dropped 96.84 points to 7,137.10 points. It had approached its historic highs of January 2022 on Friday, signing its fifth week in the green since the start of the year.
“The market is looking for reasons to take a little profit following having risen sharply since the start of the year,” observes Aurélien Taieb, equity manager at Meeschaert AM.
The markets were taken by surprise on Friday by the much stronger than expected dynamism of employment in the United States, which might call into question their prospects for an easing of monetary policy.
Investors will listen closely to a speech by U.S. central bank chief Jerome Powell on Tuesday to check whether or not stronger-than-expected U.S. jobs numbers call into question the Fed’s monetary stance.
In addition, “the market takes note of the renewed tensions between China and the United States”, following the destruction this weekend of a Chinese balloon presented by Washington as a spy device in American airspace, continues- he.
Profit taking in luxury
This heavyweight sector of the Parisian coast, which had largely benefited from the optimism linked to the reopening in China, was shaken by this renewed Sino-American tensions. LVMH lost 1.83%, Kering 3.78% and Hermès 2%.
Peace found between Renault and Nissan
After years of deadlock, Renault and Nissan have settled the conflicts between them over the governance of their alliance, to which Mitsubishi has belonged since 2016, and announced new industrial projects in the electrical sector and in new countries, following 24 years of marriage and divorce rumours.
Renault shares rose 0.28% to 39.12 euros, the biggest rise in the CAC 40 index.
Rothschild might leave the stock market
The Rothschild family’s holding company, Concordia, announced on Monday its intention to file a takeover bid for the French investment bank Rothschild & Co, in which it holds nearly 40% of the capital, with a view to requesting its withdrawal from the Sotck exchange.
Concordia is offering to buy back the shares at a price of 48 euros, a premium of 19% over Friday’s closing price of 40.25 euros. The Rothschild & Co share soared 16.77% to 47 euros.
Euronext CAC40