After having chained three consecutive quarters of decline, the longest series since the global financial crisis, the Paris Stock Exchange continues to decline in this first session of the last quarter of the year. The risk of a sharp cut in OPEC production and the setbacks of Credit Suisse come on top of the prospect of vigorous action by central banks to try to regain control of inflation, to as much as the health of the manufacturing sector in the euro zone weakened further in September.
Around 10:30 a.m., the Bedroom 40 fell 1.53% to 5,674.18 points.
The final data for manufacturing industry within the 27 show further deterioration. The PMI index established by S&P Global came out at 48.4 points in September (49.6 in August), a low of 27 months, sinking further below the critical threshold of 50 which separates growth and contraction of the activity.
” While easing pressures on supply chains have resulted in easing inflation in recent months, the energy crisis has however reignited inflationary pressures in September. The survey indeed highlights a resurgence of purchase price inflation after four months of slowdown, a trend that has in turn led to an acceleration in the rise in consumer prices.. says Chris Williamson, chief economist at S&P Global.
An aggravating inflationary factor, the barrel of Brent from the North Sea rebounded by more than 4% following press reports that OPEC+ delegates were preparing to debate a reduction of more than 1 million euros on Wednesday. barrels per day of their production, which would be the strongest since 2020. Oil prices have fallen more than 30% since the peak of last March, after the invasion of Ukraine by Russia, which worries the countries producers who fear a drop in demand. In Paris, TotalEnergies gain 1.2%, Vallourec 2.6% and Technip Energies 1.8%.
Credit Suisse tries to reassure
In Zürich, Swiss credit fall 9% to new all-time lows, dragging the banking sector in its wake. BNP Paribas, Agricultural credit and Societe Generale thus lose between 2.6% and 3.3%. Swiss bank officials have worked to reassure key customers and shareholders, according to the FinancialTimes. The cost of credit default swaps (CDS) jumped around 15% last week to levels not seen since 2009. The bank also denied press reports that it approached investors. investors for a capital increase.
On the foreign exchange market, the pound sterling touched 1.128 dollars this morning after the announcement by the Minister of Finance, Kwasi Kwarteng, that the British government has abandoned the abolition of the top bracket of income tax. This project, criticized even within the ranks of the Conservative Party, had caused the fall of the pound and a surge in the yield on government bonds (gilt), forcing the Bank of England to intervene to buy long-term debt.
Air France-KLM degraded
Note, finally, that the Brazilians will be called on October 31 to decide between Lula and Jair Bolsonaro in the second round of the presidential election. After counting approximately 97% of the ballots, Lula won 47.9% of the vote, against 43.7% for the outgoing president. A result much tighter than announced by the polls.
Tech stocks are struggling again. Capgemini loses 3.3%, Dassault Systems 3.8% and Worldline 2.9%.
Air France-KLM gives up 6.8%. HSBC downgraded the airline’s title from “buy” to “keep”.