Cac 40: Caution weighs on the Paris Stock Exchange, which is heading towards 6,000 points

(BFM Bourse) – The CAC 40 lost 1.3% at mid-session. The market remains tense and eagerly awaits the Federal Reserve’s monetary policy meeting next week.

The correction continues for the CAC 40. The flagship index of the Parisian market dropped 1.2% in mid-session to 6,078.18 points. For now, the CAC 40 has lost more than 2% over the week as a whole.

Since Tuesday, the market has had great difficulty in recovering from higher-than-expected US inflation, the publication of which weakened all stock markets before the US Federal Reserve (Fed) monetary policy meeting, the next week. A severe turn of the screw should be operated, especially since recent US indicators have hardly been likely to soften the Fed’s position.

“After the surprise on the rise in inflation (…) the signs of resilience in the economy and above all of high tensions on the job market will not push the Fed to soften its rhetoric”, notes Xavier Chapard from La Banque Postale Asset Management.

“We think the Fed will hike rates by 75 basis points (0.75 points) next week for the third time in a row, and the risk is that the Fed will even go for a 100 basis point hike. That would be a first since 1984”, he continues.

Veterinary groups hardly shimmering

In the meantime, market operators take note of the second estimate of inflation in the euro zone for the month of August, which was confirmed at 9.1% over one year.

On other markets, the euro fell 0.3% against the euro at 0.9972 dollars.

Oil contracts move without direction. The North Sea Brent contract for November delivery is stable at $90.89 while WTI for October delivery is down 0.2% at $84.89.

In terms of values, the vast majority of SBF 120 securities are in the red. The veterinary laboratories Vetoquinol and Virbac plunged by 15% and 8.6% respectively after publishing half-year results which received an icy reception.

For its part, GTT lost 4% penalized by a new sale of shares by Engie, which for its part fell by 1.6%.

Julien Marion – ©2022 BFM Bourse

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