(BFM Bourse) – The Paris Stock Exchange has once again limited its initiatives the day after a lackluster session. The CAC 40 closed down 0.4%, back below 7,000 points this Tuesday evening.
Unlike last week, the Paris Stock Exchange opts for red. The CAC 40 fell by 0.39% to end its run below the symbolic threshold of 7,000 points at 6,986.23 points this Tuesday.
The good mood on the markets is now giving way to caution. Investors are wondering both about the health of the global economy and also about the intentions of central banks as the Central Bank of Australia raised its key rates on Tuesday.
In China, the latest statistics have highlighted a weakness in foreign trade. According to figures released by the country’s customs on Tuesday, exports fell 6.4% year-on-year last month, while the consensus expected a less pronounced drop of 3.5%.
Chinese exports are suffering from “the slowdown in economic dynamics in the United States and Europe”, commented Zhang Zhiwei, economist at Pinpoint Asset Management quoted by AFP and who continues “that external demand would probably remain weak in the months to come. come”.
In Europe, growth forecasts for the last quarter of 2023 also call for caution. The European Central Bank is indeed forecasting a contraction or at best stagnation of the euro zone’s gross domestic product in the fourth quarter.
The waltz of declarations
On the monetary front, several members of the American Federal Reserve will speak throughout the week, the most anticipated intervention of which is that of its President Jerome Powell on Thursday.
And some of the members of the monetary institution wanted to temper the enthusiasm which followed the last meeting of the Fed and the publication of the report on American employment for the month of October. Including Neel Kashkari, president of the Minneapolis Federal Reserve, who indicated that the American Central Bank still had work to do to control inflation. A speech which suggests that he was in favor of a further increase in interest rates like the turn of the screw by the Australian central bank this Tuesday morning.
In Australia, the country’s Central Bank increased its key rate by 0.25 percentage points to 4.35%, after four pauses in the face of persistent inflation in the country. “The peak of inflation has passed in Australia, but it remains too high and has proven more persistent than expected a few months ago,” Ms Bullock said in a statement.
Still on the monetary front, the debate on the future direction of rates resurfaced after statements by the president of the Minneapolis Federal Reserve, Neel Kashkari. The latter indicated that the American Central Bank still had work to do to control inflation. A speech which suggests that he was in favor of a further increase in interest rates like the turn of the screw made by the Australian central bank this Tuesday morning.
A mystery investment for Edenred
Publications continue, particularly from CAC 40 companies, of which Teleperformance thumbs its nose at the market. The call center specialist closes at the top of the CAC 40 (+3.7%) despite a mixed quarterly publication and a refinement of its annual organic growth outlook.
And it is Capgemini which occupies second place on the podium (+2.5%). The IT services group confirmed its annual targets despite lackluster activity in the third quarter.
At the back of the pack, we find Edenred, which fell by 4.3%, penalized by the sale of a block of shares representing 2% of its capital by unidentified sellers.
Sanofi for its part returned 0.6%, while the National Financial Prosecutor’s Office opened an investigation in March targeting the French pharmaceutical giant for price manipulation, according to information from La Lettre.
On the foreign exchange market, the euro lost 0.3% to 1.0687 dollars. As for oil, it is consolidating after having progressed the day before following the decisions of Saudi Arabia and Russia to weigh on supply this weekend. The latest figures on Chinese foreign trade also call for caution. The January North Sea Brent contract drops 3.4% to $82.30 per barrel, while the December contract for New York-listed WTI also plunges 3.4% to $78.08 per barrel. .
Sabrina Sadgui – ©2023 BFM Bourse