Cac 40: Like the mid-term elections in the United States, the stock market remained undecided


(BFM Bourse) – The Paris Stock Exchange ends down moderately while the Republicans should only obtain a narrow majority in the House of Representatives. Investors are also limiting their positions on the eve of the publication of US inflation figures for October.

Caution dominated trading on Wednesday at the Paris Stock Exchange. Reflecting the state of mind of the day, the CAC 40 ended down slightly by 0.17% at 6,430.57 points this Wednesday evening while the final results of the midterm elections in the United States were not still known.

On Wall Street, the trend is also feverish. The Dow Jones lost 0.6%, the S&P 500 fell 0.8% while the Nasdaq lost more than 1% at the close of European stock exchanges.

According to a count published online by the wall street journal, the Republicans should obtain a narrow majority in the House of Representatives. On the other hand, the outcome remains uncertain in the Senate, where the Democrats currently have 48 seats against 49 for the Republicans. The results of Arizona, Nevada and Georgia are not yet known, while Wisconsin re-elected Republican Ron Johnson, reports CNN.

Pending the final verdict, investors are already focusing on US inflation, the figures of which are expected on Thursday. This statistic will obviously be watched by the markets to anticipate the next rate hikes by the US Federal Reserve. Economists surveyed by the wall street journal expect a year-on-year increase of 7.9%.

“The next decisions will be made in phases, in order to take into account the ‘cumulative tightening of monetary policy'”, indicates Alexandre Baradez, head of market analysis at IG France. “The Fed seemed sensitive to recent economic developments, emphasizing the need to remain ‘dependent on economic data’. The objective being to avoid the risk of excessively tightening monetary policy,” he continued.

Scor assures

As for values, Scor closed sharply up 7.6%. On the occasion of the publication of its quarterly results, the reinsurer unveiled an action plan over the next year to refocus, reduce the volatility of results and boost its profitability. “Given the group’s heavily discounted valuation, we believe that any actions that improve confidence in future expectations and limit the risk of a credit rating downgrade will be taken positively,” Jefferies said.

The title of the reinsurer is followed by Ipsen which gained more than 4%, the pharmaceutical laboratory published positive phase III results (last stage of clinical trials before possible marketing) for Onivyde in pancreatic cancer.

Bonduelle regained momentum and ended up 1.4% after announcing an increase in sales in the first quarter.

Veolia gained 0.5% after the announcement of results for nine months up sharply, marked by the integration of synergies extracted from the acquisition of Suez.

On the other side of the spectrum, Ubisoft fell 4.4%, penalized by the video game platform Roblox (-15% on Wall Street) which reported a loss in the third quarter.

On other markets, the euro fell 0.3% to 1.0055 dollars. Oil prices for their part are accelerating downwards. The contract for January delivery on Brent from the North Sea fell 2.15% to 93.31 dollars a barrel while that of December on WTI listed in New York fell 2.4% to 86.75 dollars on barrel. On the cryptocurrency side, bitcoin fell another 7.7% to $17,054 after hitting a two-year low of $16,923.

Sabrina Sadgui – ©2022 BFM Bourse



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