(BFM Bourse) – The Parisian index fell sharply this Friday, weighed down by fears of an escalation in the Middle East and an absence of a reduction in key rates from the Fed this year.
The Paris Stock Exchange is on course to end the week on a very bad note. The Parisian index dropped 1.3% at mid-session this Friday to 8,046.11 points. For the moment, the major Parisian barometer is losing around 2% over the whole week.
Two factors can explain the day’s decline. The first comes from restrictive statements on the monetary policy of the American Federal Reserve (Fed). The president of the Minneapolis branch of the American central bank, Neel Kashkari raised the possibility that the Fed would not lower its rates if inflation persisted.
The market also seems to be caught up in geopolitical risk. Israel announced Thursday that it had strengthened its defense measures following threats from Tehran. Iran said it would retaliate for the attack on its consulate in Damascus that was blamed on Israel.
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The ultra-majority of the CAC 40 in the red
In addition, “a press release from the White House was published, Joe Biden raising the tone in relation to the military policy pursued by Israel in the Gaza Strip,” notes Alexandre Baradez, head of market analysis at IG France.
“The sharp decline in European markets this morning is entirely attributable to these statements by members of the Fed and the White House press release regarding Israel. The proximity of the publication of the employment report in the United States also comes add to this renewed caution on the stock markets”, adds the specialist.
In this tense context, the market will indeed be watching, like milk on fire, the American employment report for the month of March which will be published at 2:30 p.m. Economists surveyed by the Wall Street Journal anticipate 200,000 job creations, with an unemployment rate of 3.8%.
On the value side, the movement of risk aversion is general, to the point where 37 CAC 40 stocks are in the red, and the largest increase, Carrefour, amounts to only 0.6%.
Excluding CAC 40, Wendel gained 1% after announcing the sale of 9% of the capital of the tests, inspections and certification specialist Bureau Veritas, which fell by 3%.
On other markets, the euro is stable against the dollar at 1.0836 dollars. Oil continues to rise, driven by renewed geopolitical tensions. The June contract on North Sea Brent gained 0.4% to $91 per barrel and the May contract on WTI listed in New York gained 0.2% to $86.79 per barrel.
Julien Marion – ©2024 BFM Bourse