The Paris Bourse ended slightly lower on Tuesday (-0.13%), as in the last four sessions, at the end of a day marked by nervousness and a new peak for the interest rates of the French debt.
The star CAC 40 index fell 7.35 points to 5,883.20 points. The day before, he had lost 0.45%. The momentum of Tuesday, October 4, where it had jumped more than 4%, is indeed almost completely erased.
The Paris odds changed trend several times during the session, twice falling below 5,780 points.
On the bond market, the interest rate on French 10-year debt once again came close to 3% (2.97%), exceeding its last peak at the end of September, the highest for more than 10 years. Meanwhile, it had fallen back to 2.36% on October 4. On Tuesday, it finally ended slightly lower at 2.88%.
The “euphoric” feeling of the beginning of last week is over, in a market still “obsessed” with central bank policies, inflation and the energy crisis, explains Andréa Tuéni, an analyst at Saxo Bank.
The day was also not conducive to risk taking as the minutes of the last monetary policy meeting of the American Central Bank will be published on Wednesday after the Paris close, and the American inflation indicator CPI will also have a great importance on Thursday.
The global outlook is still bleak and the International Monetary Fund (IMF) further lowered its growth forecast for 2023 in its autumn report on the world economy. The IMF also encouraged central banks to “act decisively” to lower inflation.
Investors will also turn to corporate results. “We will see to what extent the new economic conditions are reflected in the accounts of companies”, underlines Mr. Tuéni.
But, according to him, “we cannot hope for a lasting rebound” with high rates on the bond market.
LVMH, stable at 609.50 euros on Tuesday, opened the ball for results after the Paris close.
Apprehensions about banks
Banking stocks fell sharply, suffering from growth prospects but also from investor nervousness before the results of the major US banks on Friday.
BNP Paribas fell 2.33% to 42.77 euros, Crédit Agricole by 1.22% to 8.33 euros and Société Générale by 0.88% to 21.37 euros.
Chemistry doesn’t have the right formula
Groups in the chemical industry such as the Belgian listed in Paris Solvay (-5.40% to 82.76 euros) and Arkema (-4.89% to 72.38 euros) finished at the bottom of the broader SBF index 120 after the disappointment of investors with the results of the Swiss giant Givaudan, whose action unscrewed by nearly 7% in Zurich.
Reverse gear for Renault
After gaining more than 6% at the start of the session on Monday with the ongoing renegotiation of its partnership with Nissan (+2.41% at the close), Renault gave up almost all of its gains with a drop of 2.20% at 30 .73 euros on Tuesday.
Stellantis rose (+0.90% to 12.29 euros), but remained stable over two days.
The defenses are doing well
As is often the case in times of uncertainty, more defensive stocks, less sensitive to economic cycles, were favoured. In health, Sanofi (+ 2.16% to 81.81 euros) obtained the green light from the FDA, the American health authorities, for its flagship treatment Dupixent in a dermatological disease, nodular prurigo. Eurofins Scientific gained 0.17% to 60.20 euros.
Danone took 0.65% to 47.79 euros, Carrefour 1.72% to 14.79 euros.
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