Like other European markets, the Paris Stock Exchange is losing ground. The slowdown in the growth of Chinese foreign trade, hampered by health restrictions and the drop in global demand, is clouding an already gloomy economic outlook. All in a context of monetary policy tightening by central banks in an attempt to stem inflation which shows no signs of easing.
At mid-session, the Cac 40 lost 0.39% to 6,080.98 points in a trading volume of 690 million euros. The contracts future on US indices gleaned a few points the day after a decline of 0.6% in the Dow Jones and 0.7% in the Nasdaq Composite at the end of a long weekend due to Labor Day.
Central banks on the go
If it confirms that the American economy is not in recession, the acceleration of the growth of activity in services in the United States last month confirms the prospect of a major tightening on the part of from the Fed in two weeks. According to CME Group calculations based on Fed funds futures contracts, the probability of a rate hike of 75 basis points is estimated at 70%. The Bank of Canada is due to announce its monetary decision in the early afternoon and a tightening of 75 basis points is expected. The ECB will take over tomorrow and a significant rise is expected.
But before that, the Federal Reserve will publish its Beige Book in the evening. Although scheduled after the close of the European markets, this document is the main meeting of this Wednesday insofar as it constitutes the most complete point on the activity during the last weeks.
Ubisoft falls, Engie shines
Ubisoft 14.9% drop. The group announced to authorize the Chinese Tencent to rise up to 9.99% of its capital, but will not be able to go beyond for eight years. If control of the video game publisher is now secure for at least five years, the file loses its speculative aspect.
Within the CAC 40, Engie increased by 5.3% following the European Commission’s proposal to cap prices at 200 euros per megawatt hour for electricity supplied by players who do not produce energy, ie distributors. At European level, the Stoxx 600 of “utilities” posted the only sectoral increase with a gain of 2.9%.
Saffron rose 1.9% supported by a note from Goldman Sachs, which raised its target price on the title from 134 to 150 euros.