The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange was moving slightly in the red on Friday, failing to rebound after suffering its worst session the day before since March due to a sudden rise in bond market rates linked to signals of severity from the American central bank (Fed ).
After opening up 0.23%, the flagship CAC 40 index was moving towards equilibrium at 10:30 a.m. (-0.06%), falling 4.03 points to 7,078.26 points.
Thursday, the Paris Bourse had lost 228.52 points to 7,082.29 points, its worst session since March 15. After four sessions in the red this week, its losses are 4.29%, the worst weekly performance of the year and which Friday will struggle to catch up.
The fall in equity markets on Thursday is linked to a “soaring” in bond market rates, “which reached peaks yesterday” after the publication of job creations in the United States twice as many as expected, explains Michael Hewson, CMC Markets analyst.
“This resilience, while good news for job seekers, makes it a bit more difficult for central bankers to fight inflation, and that’s what worries markets.” , deciphers the analyst.
Bond rates therefore soared, because investors believe that the American central bank will not immediately stop raising its key rates, which it has begun to curb inflation, “at the risk of crushing demand and pushing economies to the recession,” adds Mr. Hewson, “prompting investors to reduce their exposure to equity markets.”
Friday around 10:10 a.m., the French 10-year rate eased very slightly, posting at 3.17%, after a surge the day before which had seen it go from 3.02% Wednesday evening to almost 3.20%. The French 2-year rate also remained almost stable, at 3.42% against 3.45% the day before after its surge.
All eyes will be on the monthly U.S. jobs report on Friday as investors hunt for any clues that could influence U.S. central bank policy. “There is concern that a good report will encourage the Fed to think the economy is more resilient than it actually is and to raise rates more than necessary,” Judge Hewson.
URW bounces back
The shopping center giant Unibail-Rodamco-Westfield signed Friday by far the biggest increase in the CAC 40, taking around 10:20 a.m. 3.19% to 48.85 euros. However, this increase is not sufficient to make up for its losses the day before (-5.55%), the real estate sector, sensitive to interest rates, having suffered particularly badly on Thursday.
Casino loses
The Casino group committee, engaged in a conciliation procedure to reduce its debt, must take place Friday in Paris, while the parent company of the Saint-Etienne distributor, Rallye, has an appointment before the gendarmerie’s sanctions commission. financial markets.
The title of Casino lost 8.36% to 2.85 euros, at 10:27 a.m. Its parent company gained 3.50%, to 1.07 euros.
© 2023 AFP
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