The Paris Bourse closed down Thursday (-0.47%), after a session marked in particular by higher than expected retail sales figures in the United States and the presentation of the British budget.
The star CAC 40 index fell 31.10 points to 6,576.12 points. The day before, it had fallen by 0.52%, ending a series of four consecutive increases.
The session was marked by the announcement in the United States of higher retail sales in October [que prvu]which raises questions about the future strategy of the US central bank, which is waiting for signs of economic slowdown to slow rate hikes, explained Grgory Bailly, financial investment expert at Milleis Banque.
Construction of new homes in October fell by 4.2% and building permit applications are also down by 2.4%, enough to rule out an improvement in the market in the immediate future.
Investors were also owed by the remarks of the President of the Fed of Saint-Louis (Missouri) on Thursday, doubting that the increases in key rates so far have led them into a sufficiently restrictive zone.
The San Francisco Fed’s Mary Daly warned that a hike in the overnight rate of another full percentage point would likely be needed from its current 3.75% 4%, also clearly ruling out a pause in monetary tightening policy for now.
The presentation of the British budget, in a context where inflation has reached its highest level since 1981, also contributed to the rhythm of the session, continues the analyst.
The UK has now entered recession and its Gross Domestic Product (GDP) will fall by 1.4% in 2023, UK Finance Minister Jeremy Hunt has announced, along with £55billion in spending cuts and tax hikes.
On the bond market, the rate for the 10-year loan from the French State took 1.4 basis points to 2.488%.
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Bouygues misses the mark
The operator Bouygues Telecom recorded a turnover up 5% year on year during the first nine months of the 2022 financial year, 5.531 billion euros, confirming its objectives, but it closed with a loss of 6.50% 28.49 euros.
Renault at the head of the race
Renault took the lead in the CAC 40 at the close of Thursday, with a rise of 2.31% to 32.78 euros, the day after the announcement of the acceleration of its employee shareholding plan, open to 110,000 employees in 29 countries, tripling the share of its employees its capital.