(BFM Bourse) – After having painfully gained 0.2% on Tuesday evening, the Paris Stock Exchange started to fall again on Wednesday at midday. The Paris market stalled again after the announcement of a slowdown in foreign trade in China last month and pending the ECB’s decision on its rates to try to curb inflation out of control.
The Paris Bourse is falling again on the eve of a crucial meeting of the European Central Bank. The CAC 40 limits its losses to 0.38% at 6081.46 points Wednesday noon after losing nearly 1% in early trade due to the announcement of a sharp slowdown in Chinese foreign trade last month.
Tuesday, the Parisian place had offered a slight increase of 0.19% supported by the reopening of the American markets and the publication of an economic indicator higher than expectations, still on the other side of the Atlantic. Growth in US services accelerated in August, a dynamism in the main sector of the world’s largest economy which argues for continued monetary tightening initiated by the Fed since last spring.
Bets therefore remain open on a next 75 percentage point hike in the Fed’s rates in the coming weeks. These expectations are also reflected in bond rates, the US 10-year yield soaring to 3.30% for the first time since June.
In Europe, the European Central Bank will deliver its monetary policy announcements on Thursday. The guarantor of the integrity of the euro should record a new increase in its key rates, after that of 0.5 point in July, the market expecting more and more on an increase of 0.75 point.
German engine stalls
As for Europe’s largest economy, industrial production fell again in July. German industrial activity is stalling, weighed down by soaring energy prices which have forced a large number of SMEs to interrupt production. On this subject, Vladimir Putin has just affirmed that Russia will no longer deliver oil or gas to countries which would cap the price of hydrocarbons sold by Moscow.
Statements that have their effect on oil prices after a 2% decline on Tuesday. These are on the upside, the North Sea Brent contract for November delivery, gains 0.9% to 93.70 dollars while the WTI for October delivery takes 0.85% to 87.62 dollars. On the other hand, the Dutch TTF futures contract, the benchmark for the European natural gas market, was trading at 229.700 euros per megawatt hour (MWh). On the foreign exchange market, the euro is stable at 0.9901 after hitting a new low since 1998, at 0.9864 dollars on Tuesday.
“Game over” for Ubisoft speculation
Engie is up more than 5%, supported by a proposal from Brussels to cap electricity prices.
The video game publisher Ubisoft collapsed by 15% on the Paris Stock Exchange, falling to its lowest since April. The agreement announced Tuesday evening between the founding family Guillemot and the Chinese juggernaut of video games and digital Tencent evaporates the speculative premium surrounding the French group.
Haulotte, for its part, lost 7.8%, the lifting platform pro saw its half-year results deteriorate, penalized by shortages of components and the rise in raw material prices.
After losing 9% in the first exchanges, Neoen limits its decline to 4.2%. The renewable energy producer is losing ground after the launch of a new bond issue.
Sabrina Sadgui – ©2022 BFM Bourse