The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
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 0.90%, or 64.98 points to 7,189.56 points, around 10:30 a.m. On Tuesday, it ended down 0.34% at 7,254.72 points.
Investors in the equity market are taking 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 maturity 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,” said CMC Markets analyst Michael Hewson 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 at the same maturity being at 3.16% against 3.14%.
These elements come a few days before the meetings of the central banks of several economic powers. The European Central Bank will meet on September 14 and the American 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 François 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 recent economic data, although not ruling out the possibility of a further increase later if necessary to cope with inflation.
In view of 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 CNBC channel.
Nevertheless, “I want to be very careful before saying that we have done the job”, he warned.
Renault on the side
The Renault group gained 2.82% in Paris to 36.34 euros, driven by the announcement Tuesday evening of the implementation of its employee shareholding plan. This movement benefited the car manufacturer Stellantis which gained 1.32% to 17.13 euros.
© 2023 AFP
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