The Paris Stock Exchange ended down 0.24% on Tuesday, releasing some gains from recent weeks in a climate of caution before the minutes of the last meeting of the American Federal Reserve (Fed).
The flagship CAC 40 index fell 17.48 points to 7,229.45 points. The day before, it had gained 0.48%.
Investors adopted a cautious positioning before the two main events of the week, the publication of the minutes of the last Fed meeting and the financial results of technology giant Nevidia, both after the close.
Concerning the American central bank, the comments are somewhat outdated at this stage and the economic data have seemed more promising since then, notes Craig Erlam, analyst at Oanda.
However, the feeling at the end of the year is important because the reputation of the central bank has been tarnished a little by its lack of responsiveness to tighten its policy at the start of the surge in inflation according to him.
As for the European Central Bank (ECB), the risk is the same according to analysts. Seeming to doubt its projections or its models, it gives disproportionate weight to lagging indicators of the cycle, missing bearish elements on inflation, estimates Bruno Cavalier, economist at Oddo BHF. For him, the ECB would today have much more reason to lower its rates than the Fed.
On the bond market, the interest rate on the 10-year French State loan, the benchmark maturity, continued its overall downward trend. It ended around 3.12%.
The third quarter results of the giant Nvidia, which launched an investor frenzy in May for companies directly or indirectly related to artificial intelligence, are also awaited. Since the start of the year, its action has been multiplied by 3.4.
Lackluster luxury
The decline of 1.89% to 704.10 euros of the luxury giant LVMH, after the Swiss bank UBS lowered its recommendation to buy the neutral stock, also weighed on the CAC 40.
Oddo BHF analysts also adjusted their forecasts for LVMH, estimating that after a third quarter which showed a visible deceleration in growth, both at LVMH and for the luxury sector as a whole, there is no instead of counting at this stage on an improvement in the general situation in the fourth quarter, according to a note.
In the same sector, Kering lost 0.93% to 399.45 euros and Herms gained 0.44% to 1,950.20 euros.
Retirement homes continue to fall
Outside the flagship index, the Orpea retirement home group fell 14.94%, a share worth more than 0.34 euros. The price remains above two cents, the threshold it could reach at the end of the takeover procedure according to the company.
In the same sector, Clariane fell 12.06% to 2.46 euros, still its historic low, the company also facing significant financial chances in the coming months.