(BFM Bourse) – The Paris Bourse fell sharply on Tuesday evening below 5,800 points, the morale of operators being undermined by recalcitrant inflation and the risks of an economic slowdown. Oil prices are also falling due to the same fears of recession in oil-consuming countries.
Another new day without for the Paris Stock Exchange. Slightly in the green at the opening on Tuesday, the Parisian place accelerated its losses over the day as the PMI indices of S&P Global revealed a new slowdown in the growth of the economy of the euro zone in June, the institute sees the region slipping into recession this quarter as the rising cost of living pushes consumers to be cautious. These worrying statistics weigh particularly on the price of the euro, which fell by 1.68% to 1.0248 dollars, the lowest for 20 years.
The CAC 40 closes for its part down sharply by 2.68% to 5,794.96 points, after having registered a four-month low during the session at 5,786.50 points. Since January 1, the losses recorded by the Paris star index amount to 18.75%.
The frankly bearish trend of the American markets at the close of the European stock exchanges did not encourage optimism. Closed for national holidays, the American market starts this week in sharp decline, the consequences of the tightening of monetary policies on growth are weighing on the trend. The Dow Jones yielded 2.2%, the Nasdaq returned more than 1% and the S&P lost 2% at the time of the European close.
The battle against inflation is far from over
Just to remember that the battle against inflation is far from over, as every day or almost, a central bank somewhere in the world gives a turn of the monetary screw, with this morning the central bank of Australia which raised its main key rate by 0.5 points to 1.35%.
In a context of mistrust vis-à-vis companies exposed to the economic situation, the advertising sector was particularly affected in Paris, like JCDecaux, which lost 9% after a study by Goldman Sachs reduced its profit forecasts. . Seller, the design office further reduces its objective on the title. Goldman Sachs also downgrades its opinion on Publicis to neutral (-5.05%).
Oil stocks also lost ground in the wake of the oil price correction as signs of the economy slowing increased. WTI fell back below $100 as Brent plunged 10% to $102.84. TotalEnergies lost 6.42% while Technip Energies lost 3.8% and Vallourec more than 10%.
The timing of the first session of the Deezer music streaming platform proved disastrous, with a 29.41% drop in the stock to 6 euros on Tuesday evening at the close.
By contrast, Rémy Cointreau (+4.6%) was able to escape Tuesday’s drop in a good way, supported by Jefferies, which raised its advice on the stock. The analyst is seduced by the growth profile of the wine and spirits group, which he considers attractive in the long term. Pernod Ricard gained 0.9%.
Abionyx was limiting its gains to 5.9% after gaining more than 23% in early trade. The laudatory opinion of Midcap Partners has aroused investor interest in the title of the Toulouse biotech, the research department judging that the action can go up to 8.10 euros, five times its closing level on Monday.
Argan rose 1.3% as the real estate investment company specializing in the development and rental of warehouses continued to grow between April and June. Argan hopes to exceed 163 million euros in rents over the year.
Sabrina Sadgui – ©2022 BFM Bourse