The Cac 40 yields nearly 1% after Jerome Powell’s “hawkish” comments


The Paris Stock Exchange fell for the second consecutive session, driven by the sharp decline in Wall Street on Wednesday. Hopes of an inflection of the Fed’s monetary policy have indeed been dashed despite the prospect of a reduction in the scale of the next rate hikes. Monetary considerations relegate corporate publications to the background, especially as the Bank of England is due to announce its decision despite the afternoon.

Around 9:45 a.m., the Bedroom 40 lost 0.92% to 6,219.30 points in a business volume of 380 million euros.

The Federal Reserve, as expected, raised the Fed funds rate by 75 basis points on Wednesday evening, bringing it to a range of 3.75% to 4%. The central bank also indicated that the lag between monetary decisions and their impact on the economy could require less marked increases in the coming months. Jerome Powell then showered hopes by indicating that he was ” very premature to consider a pause, adding that given the available indicators, the peak in interest rates is likely to be higher than previously estimated. October employment figures, due tomorrow, and inflation figures next week, could shed some new light.

Smaller increases, but for longer

Clearly, the Fed is moving towards smaller rate hikes for a longer period. ” The crunch cycle is now officially a marathon, not a sprint “Summarizes Brian Daingerfield, analyst at NatWest Markets. Goldman Sachs strategists, for their part, report that Jerome Powell’s comments have reinforced their feeling that the December dot plot (a dot chart illustrating the FOMC’s interest rate estimates) will reflect a higher median projection. for the peak in Fed funds and that the FOMC will continue to raise rates beyond next February.

In New York, the S&P 500 fell 2.5% and the Nasdaq Composite 3.4% on Wednesday, while on the bond market the yield of the 2-year US bond, the most sensitive to rate expectations in the short term, soared to 4.63%. In the foreign exchange market, the dollar is strengthening against other currencies.

BNP Paribas and Stellantis better than expected

BNP Paribas gains 1.4%. The bank reported better-than-expected results in the third quarter, during which market activities offset a decline in financing income and an increase in expenses.

Great down 7.4%. The electrical equipment manufacturer has however confirmed its annual outlook, after having published results above expectations for the first nine months of its financial year and announced two new targeted acquisitions. These results are however lower than Jefferies’ expectations in terms of margin and free cash flow. The broker further reports that the group’s growth is lower than that of its competitors.

Stellantis yields 1.8%. The automaker posted strong 29% revenue growth in the third quarter thanks to higher car deliveries and prices, as well as favorable currency effects linked to the US dollar and the real Brazilian.

Faurecia drops 7.1% after the presentation of its Power 2025 strategic plan. The automotive supplier has announced that it is aiming for a turnover of around 30 billion euros in 2025

Axa takes 0.8%. The insurer announced a 2% increase in its turnover over the first nine months of the year and estimated the amount of damage caused by Hurricane Ian in the United States at 0.4 billion euros. , a figure lower than feared.

Finally, CGG plunged 21.5%. The oil services group reduced its loss in the third quarter, a period it considers “low” due to the postponement of projects by customers in the fourth quarter of 2023.




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