(BFM Bourse) – The CAC 40 finished in sharp decline again this Tuesday, continuing a fourth session in the red. Although they stabilize, bond yields remain at high levels.
At this rate, 7000 points will soon be broken. The Paris Stock Exchange finished in the red again this Tuesday, with the CAC 40 recording a fourth consecutive session in the red, with a decline of 0.70% to 7074.02 points. The Paris index fell to its lowest closing level since March 24.
The rise in bond yields, which has weighed down the markets in recent sessions, has stabilized somewhat. But rates remain at high levels, notably with the 10-year US Treasury bond rate at 4.542% compared to 4.537% on Tuesday evening.
“Most, if not all, major central banks have virtually declared the end of their tightening cycle in recent weeks, after a very aggressive process of rate hikes over the past two years. rejoicing at the prospect of an end to the increases, investors are worried, even a little fearful”, notes Craig Erlam of Oanda.
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High rates for a long time
Among the reasons explaining this risk aversion, the market analyst cites the fact that “most banks, including the Fed (American Federal Reserve, Editor’s note) and the ECB (European Central Bank), insist on the fact that rates will remain high for longer, which does not inspire much confidence in the growth trajectories of their economies.”
The American indicators published this afternoon did little to boost the trend. The consumer confidence index, measured by the Conference Board, fell in September to 103 points from 108.7 in August. Sales of new homes for the month of August fell by 8.7% compared to the month of July, a month which had certainly marked a clear rebound.
The real estate crisis in China adds uncertainty to this already precarious climate on the financial markets. The clay colossus Evergrande is falling again on the stock market after one of its subsidiaries, Hengda Real Estate Group, defaulted on a bond repayment.
Airbus resisted
On the value side, growth stocks, sensitive to changes in interest rates, suffered. In tech in particular, with the declines of Worldline (-2.3%) and Dassault Systèmes (-1.6%). This was also the case for luxury, with Kering losing 2.2% and EssilorLuxottica 1.5%.
Airbus resisted, gaining 0.5% after appointing its super VRP, Christian Scherer, as general manager of the commercial aeronautical division. Since 2019 this function had been merged with that of executive president of Airbus, a position occupied by Guillaume Faury. The group is therefore returning to a dissociation of these functions in order to improve its operational performance. Airbus shares were also able to benefit from the order for 50 A350s from Air France-KLM.
Excluding the flagship index, Carmat collapsed 30.4% after indicating it could run out of cash by the end of October.
On other markets, the euro lost 0.16% against the dollar to 1.0576 dollars. Oil continues to decline. The November North Sea Brent contract gained 0.3% to $92.15 per barrel, while that of the same maturity on WTI listed in New York gained 0.6% to $90.17 per barrel.
Julien Marion – ©2023 BFM Bourse