2023-09-22 18:52:00
The Paris Stock Exchange ended down on Friday, like its weekly balance sheet, as investors did not appreciate the offensive tone of the American Federal Reserve which indicated that its rates would remain high for a longer period than expected. .
The flagship CAC 40 index dropped 0.40% on Friday, or 29.08 points to 7,184.82 points. On Thursday, it fell significantly by 1.59%. Over the week, the Parisian rating showed a sharp drop of 2.63%.
“The meeting of the week was the American central bank”, Wednesday evening and “this is what still dominates the markets today”, comments Andrea Tueni, market analyst at Saxo Bank.
The Fed’s monetary policy committee, the FOMC, announced that it will maintain its rates at their current level, in the range of 5.25-5.50%, but anticipates an additional increase by the end of the year. , and rates slightly above 5.0% in 2024, a higher level than expected.
This more severe position of the Fed than anticipated by the markets “caused bond yields to react: when monetary policy is not very accommodating, this causes bond prices to fall, which has the effect of raising yields”, explains Andrea Tueni.
On the bond market, the 10-year French government interest rate, the benchmark maturity, was at 3.29% around 6:30 p.m., the highest since January 2012.
Such high rates “have an impact on growth stocks, which are rate sensitive, such as the technology sector,” quotes Andrea Tueni.
In Paris, the IT group Atos has lost 2.27% since Monday, Capgemini has lost 1.97% over the week, Worldline has lost 2.03% and Dassault Systèmes has lost 0.93%.
Eramet and Suez in Dunkirk
The mining group Eramet (+1.99% to 71.65 euros) and the waste treatment and water management group Suez will set up their future industrial complex for recycling electric vehicle batteries in Dunkirk (North), which should start in 2027, the two groups announced Friday.
Capital increase for TechnipEnergies
More than 4,500 employees of the engineering and services group Technip Energies (-0.34% to 23.28 euros) subscribed to a capital increase reserved for them at a preferential rate, representing nearly 1% of the company’s shares. company, management said Friday.
Bad week for Société Générale
Over the week, Société Générale shares fell 12.66% to 23.12 euros, not recovering from the fall in the stock which followed the presentation of the strategic plan of its new general director, Slawomir Krupa, and which left investors hungry who saw a lack of ambition overall. The stock erases all its 2023 gains.
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09/22/2023 18:51:04 – Paris (AFP) – © 2023 AFP
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