(BFM Bourse) – The CAC 40 falls into the red again on Tuesday evening, while the market awaits inflation figures in the United States later in the week. It lost 0.3% at the close.
Trend reversal Tuesday evening for the CAC 40. The flagship Parisian index closes this second session of the week down 0.3% to 7,426.62 points and therefore erases a good part of its gains made the day before (+0.4 %).
Investors are in a wait-and-see position, before Thursday’s publication of the consumer price index in the United States, the best-known measure of inflation.
In the meantime, the market is monitoring the statements of central bankers. Raphael Bostic, the president of the Federal Reserve (Fed) of Atlanta, although known as one of the most dove-like members of the Fed, that is to say more focused on preserving employment and less on controlling inflation at all costs, judged that the Fed’s rate cuts will only occur in the third quarter. However, according to the CME Group’s FedWatch tool, the market anticipates a Fed rate reduction as early as March.
A barometer of market sentiment on the direction of central bank key rates, the bond market is under tension. The yield on the 10-year debt in the United States remains around 4% at 4.016% this Tuesday, while that of the German debt of the same maturity tends to 2.18% against 2.143% the day before.
STMicroelectronics weighed down by Samsung
Investors are also keeping an eye on Taiwan where a presidential election will take place this weekend. A few days before this election, the Taiwanese authorities issued an official alert message following the launch of a Chinese satellite flying over the country’s airspace. Which is seen as an attempt at intimidation by Taiwan.
On the value side, STMicroelectronics limited its decline to 1.4%, with the warning on results from a major contractor in the semiconductor sector, Samsung, and by another “profit warning”, that of the American Microchip Tech.
Trigano limited its gains to 1.3% after posting robust revenue growth in the first quarter of its staggered 2023-2024 fiscal year.
Nexans appreciated by 3.4% driven by an initiation of purchase hedging on the part of Berenberg.
As for small and mid-caps, fortunes are varied after the ordeal of the publications.
Vente-unique jumped 8.6%, praised for its excellent annual results. The specialist in online furniture sales has significantly improved its financial indicators, thus ignoring a furniture sector in crisis.
Cogra for its part fell by 10.9%, the mild winter caused sales of Cogra wood pellets to plunge in the second quarter of its staggered 2023-2024 financial year.
On other markets, the euro fell 0.2% against the dollar to 1.0925 dollars. Oil is rebounding, driven by supply tensions, particularly geopolitics. Lebanese Hezbollah announced that it had targeted a command center in northern Israel. The North Sea Brent contract for March advanced 2.3% to $77.86 per barrel while the February contract for WTI listed in New York advanced 2.5% to $72.55 per barrel.
Sabrina Sadgui – ©2024 BFM Bourse