Volatility remains the key word on the Paris Stock Exchange. The Cac 40 oscillated within a margin of nearly 100 points according to a lively session, in addition to economic and monetary considerations, by the stabilization of Wall Street at the opening, which remains to be verified, and the announcement of an intervention emergency from the Bank of England (BoE) to bring back “ the order ” on the stairs.
The Old Lady of Threadneedle Street has announced that she will temporarily make long-term bond purchases for the amount “ which will be necessary to obtain this result from today until October 14. At the same time, the BoE announced the suspension of its bond issuance program.
Around 4 p.m., the Bedroom 40 lost 0.28% to 5,738.48 points after a low of 5,651.49, unprecedented since February 2021. In New York, the Dow Jones gains 0.32% and the Nasdaq Composite is in balance.
The pound’s rebound following the BoE’s decision did not hold up against the flood of criticism of Liz Truss’ proposed tax cuts, including from the IMF which called on the British government to review his copy. Global financial markets, which are trading at near two-year lows, are also still facing the specter of recession against a backdrop of tighter monetary policies to curb inflation, all in a climate of exacerbated geopolitical tensions.
Suspicions of sabotage
Suspicions of sabotage against the Nord Stream gas pipelines, which transport Russian gas to Germany, contribute to reinforce the energy crisis which threatens Europe with the approach of winter. European leaders believe that the damage suffered by pipelines is “ deliberate and suggest that the critical infrastructures of the Old Continent are now a target.
The three almost simultaneous explosions spotted yesterday in the Baltic Sea by seismologists cannot be the result of chance and the Polish Prime Minister directly accused Russia of this “ act of sabotage at the time of the opening of a gas pipeline between Norway and his country. ” Any deliberate disruption of European energy infrastructure is completely unacceptable and will lead to a strong and united response “said Josep Borell, the head of EU diplomacy, according to the German channel ntv. In Rotterdam, European gas futures contracts increased by 7.5% to 200 euros per megawatt hour, the day after a jump of 12%.
In the bond market, the yield on the US 10-year bond eased 14 basis points to 3.82% after briefly crossing the 4% threshold this morning for the first time since 2010. Fed officials are in favor of a continuation of the cycle of aggressive monetary policy tightening. Considered “dovish”, Neel Kashkari, president of the Minneapolis branch, believes that the central bank’s reaction is aggressive in a way ” appropriate adding that the Fed will not repeat past mistakes.
Trigano sees an inflection in the shortage of chassis
Values linked to raw materials fell, weighed down by the strength of the dollar and fears of recession. ArcelorMittal loses 3.8% and TotalEnergies 1.3%.
The banks are also in turmoil, BNP Paribas, Agricultural credit and Societe Generale yielding between 3.6% and 4.4%.
trigano jumped nearly 11%. The manufacturer of motorhomes has announced an increase in its turnover in the fourth quarter of its staggered fiscal year, thanks to its acquisition policy. The group highlights in particular a shift in chassis shortages, expecting an improvement from the end of the year. ” the car manufacturers, manufacturers of these chassis, all suggest a clear improvement in the situation from the end of 2022. “, he says in his press release.
Nexity plunged on the contrary by 14%. The property developer presented this morning the objectives of its new “Imagine 2026” plan, deemed reassuring. However, Oddo BHF stresses that ” the level of indebtedness of the company will still be relatively high “.
Sanofi takes 1.6%. The pharmaceutical group says it expects a positive currency effect on its third quarter results, up to 10% to 11% for turnover and 12% to 13% for earnings per share.
STMicroelectronics drops 3.5% in the wake of Apple, of which it is one of the suppliers. Apple has backed out of ramping up production of the latest iPhone due to insufficient demand, Bloomberg reports, citing people familiar with the matter. At New York Apple down 4%.
Another significant movement in New York, Biogen jumped by more than 36% after the presentation of Phase III clinical results suggesting that the experimental treatment against Alzheimer’s disease, developed with the Japanese Eisai, drastically slows the progression of the pathology.