(BFM Bourse) – At mid-session, the Parisian index dropped 0.4% this Monday, while sovereign yields continue to rise and the geopolitical situation in the Middle East continues to limit bond taking. investor risks.
The Paris Stock Exchange is still on the ropes this Monday. At mid-session, the CAC 40 dropped 0.4% to 6,787.10 points, in a market context that is not conducive to risk-taking.
Bond yields continue to soar, with that of the 10-year US Treasury now well above 5%, at 5.013%. Information differs on the crossing of this psychological threshold (Bloomberg reports that it was broken on Monday, Reuters reports on Friday). But regardless, the important thing remains that the American yield is pushing back its highest levels since 2007 every day.
“The fall in the prices of risky assets remains affected by the sharp rise in long-term rates, even if some investors have taken refuge in government bonds in the face of the ambient uncertainty,” notes Sebastian Paris Horvitz.
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Tech suffers with rates
“The tragic events taking place in the Middle East clearly seem to have taken a greater weight on market sentiment. Indeed, tension remained high in the region, always with the increasing risks of conflagration and new outbreaks of violence,” he adds.
The Israeli army has massed tens of thousands of soldiers on the outskirts of Gaza and on its northern border with Lebanon. At this border, deadly exchanges of fire have increased between the army and Hezbollah (a Lebanese terrorist organization), while residents evacuate the border area on both sides, AFP reported.
On values, the rise in bond yields is weighing on tech groups. Atos in first place, the action losing 12.3%. “They have fragile feet,” notes an analyst.
Worldline for its part lost 5.2%, suffering in addition to the rate increases from the “bad buzz” of the weekend, continues this same analyst. A computer incident at the payments group which lasted a little less than an hour prevented payment by bank card at several major brands.
Dassault Aviation for its part takes 1.7% while La Tribune reported that Riyadh is considering an order for several dozen Rafales.
On other markets, the euro is stable against the dollar at 1.0596 dollars. Oil contracts are declining. The barrel of Brent from the North Sea for December lost 0.25% to 91.95 dollars per barrel. That of December on WTI listed in New York dropped 0.4% to 87.71 dollars per barrel.
Julien Marion – ©2023 BFM Bourse