New session of decline on the Paris Stock Exchange, the ninth in ten sessions. the Bedroom 40 ends down 0.24%, at 5,769.39 points, after having registered in session a new low of the year at 5,736 points. Last week, the Parisian index experienced its worst weekly performance since mid-June, entering the bear market zone at the same time.
Elsewhere in Europe, in Italy where Giorgia Meloni’s post-fascist party came out ahead in the general elections this weekend, Milan’s FTSE Mib ended up more than 1% after falling 3.4% on Friday. ” In the short term, we believe that the risks of tensions are modest, but they could increase in the medium term. The first priority of the government will be to finalize the finance law for 2023. Due to the short time left to complete it, we believe that the centre-right government will have to rely on the budgetary projections that will be presented by the government Draghi at the end of the month. », summarizes Ludovico Sapio, of Barclays.
However, on the currency side, the euro fell further against the greenback (to less than 0.96 at the day’s low) while the pound sterling fell to new historic lows. The dollar index hit new 20-year highs today. “Such a surge of the dollar [considéré comme une valeur refuge] has historically led to financial or economic crises, writes Michael Wilson of Morgan Stanley in a note. If there was ever a time to be on the lookout before something broke, this would be it. »he adds.
Wall Street is evolving in disorganized order, hampered by the strength of the dollar, which threatens to cut into the profits of American multinationals. The Dow Jones and the S&P 500 fell 0.4% and 0.2% respectively, while the Nasdaq Composite climbed 0.3% even though the yield on two-year sovereign bonds rose for a thirteenth trading session. rise in a row.
The global trend remains weakened by the specter of recession and the tightening of monetary policies. Christine Lagarde also declared before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels that the ECB should “continue to hike rates in upcoming meetings to dampen demand and hedge against the risk of a persistent rise in inflation expectations. »
Oil prices at their lowest since January
For its part, the OECD stressed that the combined consequences of inflation, the war in Ukraine and the energy crisis could cause a recession in most developed countries, and particularly in Europe next year. Reflecting these fears, the barrel of Brent from the North Sea fell below 85 dollars for the first time since January, before returning to around 86.70.
It prevents that TotalEnergies closed with a gain of more than 1%. The French oil company, which had already been chosen this summer by Qatar as the first partner for its North Field East LNG project, has also just been selected as the first international partner of North Field South (NFS), with a capacity of 16 million tons per year. According to the agreement, TotalEnergies will obtain a 9.375% stake in the NFS project (out of a total of 25% available to international partners) while the national company QatarEnergy will hold the remaining 75%. Note also that JPMorgan has raised its opinion from “neutral” to “overweight” and is now targeting 62 euros, against 59 previously.
Apart from the Cac 40, Elior plunged 25%. Stifel analysts, who maintain their “sell” opinion on the stock, fear that the collective catering group will fail to meet consensus expectations.