The Paris Stock Exchange opened in the red on Wednesday and continues to evolve in negative territory, driven by the rise in oil prices which has investors wondering about the consequences on inflation.
The star CAC 40 index fell by 0.90%, or 64.98 points 7,189.56 points, around 10:30 a.m. Tuesday, he finished down 0.34% to 7,254.72 points.
Investors in the equity market take a dim view of the rise in oil prices that followed the announcement of the extension of the production cuts from Saudi Arabia and exports from Russia until the end of 2023.
The prices of a barrel of Brent from the North Sea, for delivery in November, and those of a barrel of American West Texas Intermediate (WTI), with luck in October, indeed reached their highest since November on Tuesday.
On Wednesday, around 10:30 GMT, oil prices were down but continued to move at high levels.
These prices worry investors as they may help keep inflation high for longer, CMC Markets analyst Michael Hewson said in a note.
This fear is reflected in the rise in bond rates, adds the analyst.
Around 10:30 a.m., the interest rate on the German 10-year loan stood at 2.64%, against 2.61% the day before, the French rate even luckily being 3.16% against 3.14%.
These elements come a few days from the meetings of the central banks of several economic powers. The European Central Bank will meet on September 14 and the US Federal Reserve (Fed) on September 19 and 20.
I believe that we are close or very close to the high point of interest rates, the main instrument to fight against inflation, said Wednesday the Governor of the Banque de France Franois Villeroy de Galhau during an interview on BFM Business.
On Tuesday, an official of the American central bank (Fed) opened the door to maintaining rates at the next Fed meeting in September, given the recent economic data, but not excluding the possibility of a rise. further supplement if necessary to cope with inflation.
Given recent inflation and employment figures, there is no indication that we need to act urgently, said Christopher Waller, one of the governors of the Federal Reserve, during an interview on the channel CNBC.
Nevertheless, I want to be very careful before saying that we have done the job, he warned.
On the meeting’s agenda is the ISM services activity index for August in the United States.
The August PMI and ISM figures should both indicate the sector is in expansion territory, 51.2 and 52.5 respectively, with any figure above 50 indicating growth, Hewson said.
Renault on the side
The Renault group gained 2.82% Paris 36.34 euros, carried by the announcement Tuesday evening of the implementation of its employee shareholding plan. This offer is open in 29 countries and will involve nearly 98,000 employees, detailed the group in a press release.
This movement benefited the car manufacturer Stellantis which gained 1.32% 17.13 euros.