The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.34% on Tuesday, hampered by the jump in oil prices and the rise in rates on the bond market.
The star CAC 40 index fell 24.79 points to 7,254.72 points. On Monday, he dropped 17.26 points after a session marked by low trading volumes.
Investors composed “today with an indigestible cocktail”, commented Vincent Juvyns, member of the JPMorgan AM strategy team.
“The PMI indices this morning were not good, the extension of the production cut in Saudi Arabia drove up oil prices and there was a rise in bond rates”, summarizes the analyst.
Investors first came to terms with the leading PMI activity indicators which showed a slowdown in the economy in the euro zone. This gives them hope that the European Central Bank (ECB) will put an end to its series of key rate hikes at its meeting on September 14.
The prospect of a further rate hike raises concerns “because it is likely to worsen an already difficult situation” and to cause “the euro to fall”, underlines Michael Hewson, analyst at CMC Markets.
Across the Atlantic, the American Federal Reserve (Fed) will meet on September 19 and 20.
The Paris stock market index sank further into negative territory after the announcement of the extension of the reduction in production from Saudi Arabia and exports from Russia until the end of 2023, which had the effect of making s oil prices to their highest levels since November.
Around 4:35 p.m. in Paris, a barrel of Brent from the North Sea, for delivery in November, took 1.81% to 90.61 dollars, shortly after climbing to 91.15 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for October delivery, gained 2.10% to 87.35 dollars, after peaking at 88.07 dollars.
However, “rises in oil prices are fueling fears about inflation”, comments Vincent Juvyns, which tends to investors as central bank meetings on their monetary policies approach.
On the bond market, the interest rates of European 10-year loans rose: the German was at 2.61% around 4:35 p.m. GMT, against 2.58% the day before and the French at 3.14% against 3, 1%.
TotalEnergies fills up
The French hydrocarbon giant, TotalEnergies, closed up 2.01% at 59.90 euros, signing the best performance of the CAC 40 of the session, driven by increases in oil prices.
Elsewhere in Paris, Vallourec gained 1.03% to 12.78 euros, Technip Energies 2.87% to 22.56 euros, Maurel & Prom 4.73% to 4.71 euros and CGG 1.24% to 75 cents .
© 2023 AFP
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