The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange took a nosedive on Monday, falling below 5,700 points as investors fear the economic slowdown against a backdrop of unreassuring news after a gloomy third quarter for financial assets.
Around 10:30 a.m., the CAC 40 index fell by 1.48% to 5,676.87 points. On Friday, the Parisian rating had rebounded by 1.51% but it lost more than 5% in September.
Financial markets ended a weak third quarter, tormented by the repercussions of the war in Ukraine, the persistence of inflation and the risks of recession induced by the powerful tightening of monetary policies by central banks.
The ECB has prepared the market for further rate hikes over the next few months to curb the rise in prices which shows no signs of letting up in the euro zone: inflation jumped again in September to reach 10% over one year , a new record fueled by soaring energy and food prices.
The energy crisis continues to weigh on investor sentiment. Gazprom completely suspended its gas deliveries for the day on Saturday to the Italian hydrocarbon giant Eni, citing the “impossibility of transporting gas through Austria”.
Gas-saving measures in Europe will be “crucial” this winter to keep stocks at sufficient levels in the event of a total Russian gas cut and a “late cold snap”, the International Energy Agency said on Monday. (IEA) in its quarterly report.
In France, the French manufacturing sector recorded in September its strongest decline since May 2020 due to a “fall in demand for manufactured goods”, according to an index published Monday by the firm S&P Global.
In the United Kingdom, the British government backtracked on Monday morning by reversing a controversial tax cut for the wealthy.
The pound reacted little to the announcement of the withdrawal of the measure: it was up slightly by 0.32% to 1.1208 dollars around 08:25 GMT. UK 10-year yields fell back below 4% (to 3.99%) after hitting a high since 2008 at 4.59% last Wednesday signaling a surge in the cost of funding UK debt.
Contract in Brazil for Vinci
The title of the French construction giant has won two contracts for a total of one billion euros for two high voltage lines in Brazil, the largest of which is accompanied by an operation and maintenance period of 30 years.
Air France-KLM penalized by a rating
The action fell 5.69% to 1.23 euros around 10 a.m., after HSBC downgraded its recommendation on the stock to “hold” against “buy”.
Diet benefit at Bonduelle
The French specialist in canned and frozen vegetables Bonduelle recorded a 38% plunge in its net profit, to 35.4 million euros, for its staggered 2021-2022 financial year, weighed down by inflation and the difficulties encountered by its activities in North America. The title lost 4.42% to 10.82 euros.
Technip Energies wins a contract in Belgium
The oil engineering group (+ 1.94% to 11.84 euros) announced that it had won a contract worth several hundred million euros for the “supply of equipment” for an ethane cracker from the petrochemical giant Ineos in the port of Antwerp, Belgium.
© 2022 AFP
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