The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.92% on Tuesday, weighed down by a rise in bond interest rates and investors who are reviewing their scenario of lowering central bank key rates for 2024.
The flagship CAC 40 index lost 75.76 points to 8,130.05 points, marking its worst session since January 17. Last week, the Parisian rating increased by 0.66% and completed its fifth consecutive month of increase (+3.51% in March), with a record of 8,253.59 points during the session on Thursday.
The Paris Stock Exchange was closed Friday and Monday, its longest shutdown of the year. Rising at the opening, the trend reversed at midday as the New York Stock Exchange opened.
On the bond market, American government interest rates increased significantly on Monday and continued to rise on Tuesday. Following suit, the yield on France’s ten-year bond rose from 2.81% on Thursday to 2.92% on Tuesday around 6:00 p.m.
“The resilience of the American economy gives the Federal Reserve time” before lowering its key rates, comments Sacha Hedelin, portfolio manager at Amplegest.
The markets were banking on a first cut in key rates from the US Federal Reserve (Fed) in June, then several other rate cuts by December. Given the latest economic statistics, “expectations of a drop in rates are readjusting downwards”, underlines Sacha Hedelin.
Investors learned on Monday that manufacturing activity in the United States had started to rise again in March, after 16 consecutive months of contraction according to the ISM professional federation, with in particular the price component which came out well above expectations. .
On the European side, French manufacturing production continued to slow down in March, but tends to stabilize, according to the PMI index, and inflation in Germany slowed further in March, to 2.2% year-on-year. , according to provisional figures.
TotalEnergies at the top of the CAC
TotalEnergies climbed 3.92% to 65.96 euros, benefiting from the continued rise in oil prices, with a barrel of Brent close to $90 on Tuesday. The barrel of Brent has gained more than 15% since January 1, 2024.
Decline in the automobile market in March
The French automobile market experienced a slight decline in March (-1.47%) compared to last year, with two fewer working days and the wait for new models likely to revitalize the market, particularly at Stellantis (-3.28% to 25.48 euros), according to statistics published Monday. Renault gained 1.51% to 47.50 euros.
Millions for Bompard
The CEO of Carrefour (+0.57% to 15.97 euros) Alexandre Bompard will receive, in continuity with previous years, at least 4.5 million euros for the year 2023, to which will be added later shares , if the general assembly gives the green light on May 26, according to an official communication consulted on Tuesday.
Voltalia returns to profit
The company specializing in the production of renewable energies Voltalia jumped 9.30% to 7.17 euros after announcing a profit of 29.6 million euros for the year 2023, compared to a loss of 7.2 million euros in 2022, when presenting its annual results. The company also announced new objectives, with a further increase in its capacity and operational profitability.
© 2024 AFP
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