The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended sharply down 1.29% on Tuesday, as investors exercised caution pending a vote by the US Congress on the compromise to avoid a US default.
The star CAC 40 index fell 94.06 points to 7,209.75 points. The day before, he had lost 15.37 points to 7,303.81 points.
“We have a two-speed market, with on the one hand artificial intelligence which pushes it upwards and a more cautious narrative, everything that is more sensitive to economic activity being much more fragile”, sums up Sophie Chauvellier , manager of Dorval AM.
At the opening of Wall Street, the processor giant Nvidia exceeded the trillion dollar mark in market capitalization, driven by the boom in artificial intelligence (AI) and thus joined the very closed circle of five groups displaying more trillion in valuation (Apple, Microsoft, Amazon, Alphabet and Saudi Aramco).
On the macro side, consumer confidence in the United States fell in May, less sharply than expected but still fell to its lowest since November, with current conditions looking worse than before, according to the index. published Tuesday by the Conference Board.
“What the Conference Board notes is that part of household spending linked to the excess savings built up during the Covid-19 pandemic is deflating, we are witnessing a slowdown in economic momentum”, continues Sophie Chauvellier.
Also on the other side of the Atlantic, investors are waiting for the US Congress to validate the agreement reached between President Joe Biden and Republican leader Kevin McCarthy to raise the US debt ceiling in exchange for budget cuts .
If no compromise is voted, the country could find itself in default of payment as of June 5, according to the American Treasury. Mr McCarthy has scheduled a vote in the House on Wednesday in plenary. It will then be the turn of the Senate, with a Democratic majority, to seize it.
The market will not be able to get rid of this news “until there is certainty”, even if “the scenario of a default of the American debt, which would be unheard of, seems unlikely”, indicates the analyst.
In addition, the Parisian index is “sensitive to Chinese demand”, underlines Sophie Chauvallier and “the impetus which was linked to the reopening of this market is running out of steam a little”.
The French oil and gas giant TotalEnergies recorded the largest drop in the CAC 40 (-3.43% to 53.82 euros), like oil stocks elsewhere in Europe which fell in the wake of the drop in prices. oil prices before congressional consideration of the agreement to avoid the default of payment by the United States.
BNP Paribas down
BNP Paribas dropped 1.44% to 55.29 at the end of the Paris session. Its Hungarian subsidiary dedicated to the bank’s consumer credit was acquired by Cofidis, a subsidiary of Crédit Mutuel Alliance Fédérale, which brings together 14 of the 18 federations of the mutualist group as well as CIC.
Among the banking stocks listed on the CAC 40, Axa dropped 1.05% to 26.97 euros and Crédit Agricole 1.38% to 10.73 euros. Societe Generale gained 1.41% to 22.31 euros.
Valneva loses 2%
The Franco-Austrian pharmaceutical group dropped 2.07% to 5.29 euros. Valneva said in a statement on Tuesday that it had filed a marketing authorization application for its vaccine candidate against chikungunya, a disease transmitted by mosquitoes, with Canadian health authorities.
© 2023 AFP
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