(BFM Bourse) – The CAC 40 lost 1.40%, returning below 8,000 points at the close for the first time since the beginning of March. Investors are worried about the rise in US bond rates and are keeping an eye on developments in the Middle East.
The trend was clearly heavy on the Paris Stock Exchange, facing headwinds from geopolitics and investors’ fears about rates and inflation.
In this context, the CAC 40 lost 1.40%, to close below the key threshold of 8,000 points for the first time since March 6, at 7,932.61 points. The flagship Parisian index also suffered one of its worst sessions since January 3 (-1.58%).
In Europe, the yield on the 10-year French bond has settled at 3%, while that of the German debt of the same maturity is moving to 2.484% after having exceeded 2.50% in the afternoon .
In the United States, the atmosphere is identical. The yield on 10-year US debt continues to rise, rising to 4.655% compared to 4.608% the day before, while the latest economic data reinforces the prospect of a resilient US economy but also of persistent inflation. And, therefore, key rate cuts from the American Federal Reserve (Fed) which are becoming more distant.
Retail sales published Monday in the United States thus came out higher than expected, following in step with inflation which had already exceeded consensus last week.
Investors continue to monitor the situation in the Middle East after Iran’s attack on Israel this weekend. Monday evening, the head of Israeli diplomacy, General Herzi Halevi declared that the army would “respond to the launch of so many missiles and drones”, according to comments reported by Agence France Presse (AFP).
The vast majority of the CAC 40 in the red
In terms of values, the entire Parisian market is suffering. Only two CAC 40 stocks closed in the green, namely Orange (+1.1%) and Teleperformance (+0.75%). The other 38 finished the day in negative territory.
In this context, cyclical groups have particularly suffered, including ArcelorMittal which finished bottom of the CAC 40 this Tuesday. The steelmaker plunged 6.90%, weighed down among others by Deutsche Bank which downgraded its opinion on the stock to “hold” compared to “buy” previously.
Renault is not to be outdone and lost 3.85%, while Stellantis lost 2.9%.
L’Oréal limits its decline to 0.1% while one of its peers in consumer goods, the owner of Nivea, Beiersdorf gained 1.1% in Frankfurt, after having signed a very good first quarter.
Note that after abandoning its listing project last fall, the professional software specialist Planisware relaunched its IPO project on Tuesday in “express” mode. The group will arrive at the Paris Stock Exchange on Thursday.
On other markets, the euro is up 0.1% against the dollar at 1.0631 dollars. Oil prices change little. The June contract on North Sea Brent gained 0.04% to $90.14 per barrel while the May contract on WTI listed in New York appreciated by 0.1% to $85.50 per barrel. .
Sabrina Sadgui – ©2024 BFM Bourse