The Paris Stock Exchange ended down 0.41% on Wednesday, fearing that the global economy could enter a significant recession in 2023 because of soaring interest rates, which may not drop anytime soon.
The main index of the CAC 40 stock market fell by 27.20 points to 6,660.59 points. The rating has been falling since the beginning of the week, changing trend after nine consecutive weeks of rise.
The trend is cautious for the fourth session in a row, due to fears about the rapid rise in interest rates, the deterioration of the economy and a looming recession, comments Ilana Azuelos-Bossard, deputy director at KiplinkFinance.
The action of the central banks to bring inflation back to an acceptable level is indeed beginning to have an impact on economic activity, which is showing more and more signs of slowing down.
The CEO of JPMorgan Chase bank, Jamie Dimon, has also warned, on the American channel CNBC, that inflation and the measures of the Fed to curb it could well derail the economy and cause a moderate recession or drunk.
The managing director of another bank, Goldman Sachs, David Solomon, agreed, and said he expected troubled times economically.
This small phase of decline is nevertheless considered normal by the Kiplink Finance expert who recalls that the CAC 40 has gained 1,000 points in six weeks, resisting rather well given all the anxiety-provoking elements that have been among the concerns of investors for several years. month.
The market does not take into account good news, which we have been waiting for for a while: the relaxation of health restrictions in China, adds Ms. Azuelos-Brossard.
Sanofi at the top of the CAC 40 after a legal victory
The pharmaceutical group Sanofi climbed 6.10% to 90.60 euros, driven by a legal victory in the United States in the case of Zantac, a treatment long sold in North America against heartburn but withdrawn from the market in 2019 after studies have established that this drug degrades in the body into a carcinogenic component.
This decision significantly reduces the scope of the dispute, potentially by more than 50%, and supports Sanofi’s scientific defenses against the allegations made, the laboratory reacted.
The litigation concerns several American States.
Conversely, its subsidiary specializing in active ingredients Euroapi fell 15.75% to 14.37 euros, after having slightly revised down its financial outlook after the suspension of certain Budapest production activities. Euroapi now forecasts a turnover of 980 million euros, against 1 billion previously, and a gross operating margin for its main activities of 12% to 13%, against 14% previously forecast.
Retirement : save by paying less tax. 13 contracts compared
Kering degrad
The action of the luxury group Kering fell 4.15% to 522.60 euros, the largest drop in the CAC 40, of a note from the bank UBS which is concerned about the future performance of the company, after the departure of the director. creation of Gucci and the controversy over the Balenciaga brand. UBS analysts changed their recommendation on this stock to neutral, previously against buy.
Airbus drops
Airbus (-2.20% to 108.40 euros) will narrowly miss its target of 700 aircraft delivered in 2022, the European aircraft manufacturer said in a press release on Tuesday. However, the group maintained its financial targets for 2022.
OL fall again
The action of OL Groupe, the company that owns the Olympique Lyonnais football club, fell 11.02% to 2.18 euros after losing 12% on Tuesday, the first trading session for the title after almost a month suspension. On Monday, OL Groupe gave a final deadline of two days to finalize the takeover of the club by the American John Textor announced since the summer.