The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange ended stable (-0.03%) on Monday, hesitating between skyrocketing bond interest rates and economic dynamics which remain sustained in the United States.
The flagship CAC 40 index finished at 7,589.96 points (-2.30 points). On Friday, the Paris Stock Exchange finished close to equilibrium (+0.05%) at 7,592.26 points, however posting a loss of 0.55% over the week.
The Parisian rating sailed around its Friday levels throughout the session, while at the same time on the bond market, the interest rate on the ten-year French government bond continued to rise. , like Friday.
Sovereign debt interest rates rose sharply in three sessions, driven by comments from US Federal Reserve (Fed) Chairman Jerome Powell, higher-than-expected job market data and a level of activity in services well above expectations in the United States.
The interest rate on the ten-year French government bond stood at 2.81% around 6:00 p.m. (5:00 p.m. GMT), compared to 2.74% on Friday.
The latest American economic statistics are “very good for American activity and for the ‘soft-landing’ narrative”, that is to say a slowdown in inflation which is not accompanied by a recession, underlines Alexandre Baradez, head of market analysis at IG France.
But on the other hand, “this very probably pushes back the desire for short-term rate cuts,” he adds.
Markets continue to anticipate a “much too aggressive” rate cut during the year, while “the latest statistics do not give room for five rate reductions” from the Fed in 2024, observes Alexandre Baradez, also recalling that the American central bank “was only considering, in December, three rate cuts this year.”
Atos at the lowest point in its history
Atos shares fell by almost 29% to 2.79 euros and reached the lowest level in its history at 2.74 euros during the session.
The IT group, which is experiencing major financial difficulties, is canceling its capital increase project, launched last summer, but is continuing its discussions with billionaire Daniel Kretinsky to sell part of its activities to him, according to a press release published before the opening of the market.
Krupa cuts staff
The banking group Société Générale (-1.47% to 22.77 euros) announced Monday the elimination of around 900 positions at its headquarters, “without forced departures”, or around 5% of the workforce at its headquarters, as part of of a cost reduction plan already announced.
This job reduction plan is the first by Slawomir Krupa, general director of the bank since May 2023. Its scale is almost double compared to the information published on January 19 by the Bloomberg agency, which reported a plan providing for more 500 positions eliminated.
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