The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed down 0.70% on Tuesday and remains on its downward trend in the wake of the rise in rates on the bond market.
The flagship CAC 40 index dropped 49.86 points to 7,074.02 points the day after a decline of 0.83%.
“We are going through a difficult week, without any real news”, but it is also in this environment “that we can observe the behavior of the market”, comments Florian Ielpo, in charge of macroeconomics at Lombard Odier IM.
“The market today is giving us a monetary policy anxiety attack”, but “we have simply told it that the rates will stay where they are for an indefinite horizon”, summarizes the economist.
The American Federal Reserve (Fed) announced last Wednesday that it would maintain its rates in the range of 5.25-5.50%, while anticipating an additional increase by the end of the year, as well as rates slightly above 5.0% in 2024, a higher level than expected.
“Fundamentally, the Fed has done nothing to explain the extent of the negative reaction of the markets,” said Florian Ielpo, but given the surge in long-term rates on the bond market, both in the United States and in Europe , investors are worried about companies’ “financing costs”.
On the bond market on Tuesday, the yield on 10-year US government bonds reached a new high, at 4.56%, a first since October 2007; that of the 30-year maturity rose to 4.68%, a record since 2011.
In Europe, the interest rate on the ten-year German government bond reached 2.82%, the highest since 2011, while its French equivalent hovered around 3.36%, at its highest. high level since January 2012.
However, when the “cost of financing increases, we invest less and less, we have less and less prospect of growth and another dynamic takes place, the dynamic of recession”, explains Florian Ielpo. .
Worldline down
The payment specialist Worldline closed last in the flagship index on Tuesday, dropping 2.31% to 26.66 euros after the publication of a note from Oddo BHF indicating that after “contacting the company , we have made slight changes to our estimates (-0.3% for estimated 2023 revenue and -3% for estimated 2023-2024 earnings per share).”
Carmat throbs
The French group, designer of an artificial heart, fell sharply (-30.41% to 5.15 euros) after having warned on Monday, after the stock market session, that it had financial visibility “until the end of October”, showing itself however “very confident” about its ability to replenish its cash flow and accelerate the pace of sales from the fourth quarter.
50 long-haul Airbus A350s ordered
The Franco-Dutch group Air France-KLM (-1.10% to 11.70 euros) will place a “major order” for 50 long-haul Airbus A350 aircraft in order to “continue the renewal and rationalization of its fleet” with devices that are more fuel efficient and emit less CO2. Airbus gained some 0.50% to 123.58 euros.
- Euronext.com/fr/products/indices/FR0003500008-XPAR” ignorabletext=”true”>Euronext CAC40
© 2023 AFP
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