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Paris (AFP) – The Paris Stock Exchange was unable to move forward (-0.24%) on Friday, before the publication of the evolution of producer prices in the United States, considered as a taste of the meeting of the Fed next week.
The star CAC 40 index fell 16.19 points to 6,631.12 points around 9:50 a.m., despite a positive opening. Over the week, during which it never ended a rising session, it was down 1.73%.
“The markets are consolidating slightly after their strong rebound for two months and show that fears of recession are back,” write analysts at Banque Postale in a note.
The drop in equities is also accompanied by a drop in rates on the bond market, which “shows that risk aversion is not driven by fears of inflation (…) but by fears of a more marked economic slowdown” in several regions of the world, they explain.
Investors fear that the rise in the cost of credit, caused by the increase in the key rate of central banks in order to fight against inflation, will also penalize economic activity.
They are therefore waiting for the last meeting of the year of the major central banks, next week, to find out a little more about the orientations of monetary policies in 2023.
Several inflation indicators will be published earlier on Friday, such as the evolution of producer prices in November in the United States or long-term inflation expectations by American consumers in the Michigan index.
On Tuesday, it will be the turn of consumer prices in the United States.
“The October reports have helped shape the narrative in recent weeks that US inflation has peaked” giving stock market indices a boost, said CMC Markets analyst Michael Hewson.
Antoine Arnault takes the lead
The son of Bernard Arnault, Antoine, was appointed managing director of the holding company which controls LVMH (+0.06% to 720.40 euros), Dior SE, on Friday, replacing Sidney Toledano.
Antoine Arnault was also appointed vice-chairman of the board of directors of the holding company, a choice which is part of the strategy “intended to ensure the long-term sustainability of family control over the companies Christian Dior SE and LVMH Moët Hennessy – Louis Vuitton SE”, is it specified in the press release of the holding company.
TotalEnergies distances itself from the Russian Novatek
The French giant TotalEnergies announced Friday to withdraw its directors from the Russian Novatek and no longer recognize in its results the 19.4% it holds in the gas giant, consequently providing for an asset impairment of 3.7 billion dollars in fourth trimester. The action fell 1.30% to 56.06 euros.
Worldline degraded
The Worldline payment specialist fell 4.07% to 40.96 euros, the lowest since October after JP Morgan downgraded its outlook for the company in a note quoted by the Bloomberg news agency.
The company will also integrate the CAC 40 ESG index, which takes more account of extra-financial criteria for its selection, announced Thursday the operator of the Paris Stock Exchange Euronext. No changes were made during the quarterly review of the CAC 40.
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