The Paris Stock Exchange fell slightly, by 0.21%, on Wednesday, preferring caution before the announcements of the American central bank relating to its monetary policy, the day after inflation figures in the United States were lower than expected.
The CAC 40 index lost 14.19 points to 6,730.79 points. The day before, the Paris market had rebounded sharply by 1.42% after a negative start to the week.
The Parisian coast showed a wait-and-see attitude throughout the session, awaiting the press release from the Federal Reserve (Fed), which will be published at 7:00 p.m. GMT, and the speech of its president Jerome Powell.
Investors anticipate a 50 basis point hike in Fed rates at the end of its last meeting of the year, after four straight increases of 75 basis points.
The hypothesis of a slowdown in monetary tightening is supported by US inflation figures on Tuesday, which came in below analysts’ expectations, 7.1% in November over one year, slowing after +7.7 % in October. Over one month, prices only increased by 0.1%, against +0.4% in October.
These figures included good news for Bndicte Kukla, senior investment analyst at Indosuez Wealth Management. However, the high level of inflation in services worries the expert, especially since the job market remains very tight and wages will continue to exert pressure on prices in services.
Investors will scrutinize the words of Jerome Powell for any clue on the evolution of rates in 2023, which they hope to see stagnate at a peak around 5%, or even drop for the most optimistic.
The markets are overestimating the Fed’s ability to pivot, that is to say change direction in its monetary policy, warns Bndicte Kukla, however, believing that the job market and that inflation in services remained too tight.
Thursday, it will be the turn of the Bank of England and the European Central Bank to decide.
AB Science and Lysogene separate
The biotech AB Science lost 24.31% to 6.45 euros, after having received a notice of insufficiency from the Canadian public health authority Health Canada in the context of its application for the marketing of masitinib in the treatment of amyotrophic lateral sclerosis.
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The review process has been paused and will resume when additional information is released to Health Canada, according to a statement from the pharmaceutical company.
The title Lysogene plunged 42.19% to 0.37 euros, for the session of resumption of its quotation, while the biopharmaceutical company announced that the commercial court of Nanterre had granted its request for the opening of a procedure of safeguard, which will be accompanied by a fixed observation period of six months maximum.
Lysogene, a company specializing in gene therapy targeting diseases of the central nervous system (CNS), announced on December 6 that it was requesting the opening of such a procedure given its financial situation and the lack of new funding.
Stone and Holidays in Progress
The number one European leisure residence Pierre et Vacances climbed 7.21% to 1.07 euros, after announcing on Wednesday the success of the restructuring operations of Villages Nature Tourisme and the closure of the accelerated safeguard procedure opened in July before the Paris Commercial Court.