The Paris Stock Exchange extended on Wednesday, falling by 0.37%, its drop from the day before, still digesting with difficulty the inflation figures in the United States and their repercussions on the policy of the American central bank (Fed) .
The star CAC 40 index fell 23.28 points to 6,222.41 points. The day before, it had lost 1.39%, breaking a series of five consecutive upward sessions.
The Parisian rating fell from midday, no significant rebound materializing in the United States after the purge suffered by Wall Street on Tuesday.
But it is doing better than most other European stock markets, helped by the good resistance of luxury (LVMH +0.51% to 664.20 euros), TotalEnergies (+2.48% to 51.26 euros) and the car.
“The narrative of inflation, which was beginning to ebb and would bring the expected pivot from the American central bank, has been showered by the latest data”, comments Guillaume Chaloin, director of equity management Meeschaert Amilton AM.
Now, investors are counting on a rise in the key rate of the Fed next week, but also in the future, stronger than what they expected until then, he explains. Such measures would make it possible to fight against inflation but carry the risk of plunging the economy into recession.
Energy issues also occupied the Parisian index.
The President of the European Commission Ursula von der Leyen has promised that the European Union will undertake “a complete and in-depth reform” of its electricity market and wants the cap on the income of electricity producers based on renewable and nuclear energy can raise “more than 140 billion euros”.
In France, Prime Minister Elisabeth Borne announced the extension in 2023 of the tariff shield which will include an increase limited to 15% in gas and electricity tariffs.
The price of natural gas in Europe was at 222 euros per megawatt hour on the reference market, the Dutch TTF, up 12% around 5.50 p.m. still very far from the peak at the end of August (342 euros in session).
In addition, France should experience growth of 2.7% in 2022 according to an estimate by the government, which has revised its previous forecast upwards (2.5%) also said Wednesday the Minister of the Economy Bruno Le Maire. .
Bercy, however, revised the growth forecast for 2023 downwards on Tuesday in the presentation of the finance bill.
Doubts about the activity
The companies most dependent on economic activity suffered from the risks of recession heightened by the upcoming rate hikes by central banks. At the bottom of the CAC 40 were the mining company ArcelorMittal (-4.22% to 21.92 euros), the building materials specialist Saint-Gobain (-2.31% to 40.81 euros), or even the aircraft manufacturer Airbus (-2.07% to 95.48 euros).
On the other hand, the automobile was in the spotlight, with gains of 3.06% to 30.61 euros for Renault and 0.80% to 13.67 euros for Stellantis.
Salary increase at Air-France
Air France announced on Wednesday that it would grant a 5% salary increase to all its employees, along with a bonus of 1,000 euros, in response to inflation. The title fell 3.02% to 1.43 euros, observing the same trend as the entire sector.
Pierre et Vacances down before the results of the capital increase
The European number one for leisure residences fell 3.03% to 1.28 euros on Wednesday, pending the result of the subscription to the capital increase, which is communicated after the markets close.
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