The Paris Stock Exchange loose ballast, still tormented by the American central bank

The Paris Stock Exchange fell by 0.98% in the first exchanges on Monday, finishing to draw the consequences of the strength of the American job market and its effects on the tightening of the policy of the American Central Bank.

The star CAC 40 index lost 57.26 points to 5,809.68 points shortly after 10:20 a.m. Friday he had already cd 1.17%, even if that had not prevented him from progressing by 1.82% over the whole week.

Renault’s action was particularly sought after, after information on an advance in negotiations with Nissan about its alliance.

The US job market remained dynamic and very tense in September, strengthening the chances that the Fed will continue its aggressive rate hikes in the coming months, notes Xavier Chapard, member of the strategy team at Banque Postale AM.

The numerous job creations show that American activity is holding up well against the first increases in the key rate by the American Central Bank, which are supposed to slow the economy. Moreover, the tighter a labor market, the greater the pressure for wage increases, which generally promotes higher prices.

However, the markets still want to believe that the Fed, and the other major central banks, will quickly be forced to relax their policies in the face of a deteriorating economic situation, notes the analyst, even if this relaxation does not yet seem to materialize.

In France, growth in gross domestic product (GDP) in the 3rd quarter should come out at 0.25% and be slightly weaker than estimated (0.3%) in early September, according to the latest Banque de France business survey.

Renault speeds up its negotiations with Nissan

Negotiations are accelerating between Renault and Nissan regarding the restructuring of their alliance with the planned refocusing on electrics from the French manufacturer, but many points still remain to be settled, according to a source familiar with the matter interviewed by AFP on Monday.

Renault and Nissan confirmed Monday in a joint press release discussions on several initiatives to strengthen cooperation, citing the possibility of an agreement around several common strategic initiatives.

Renault took 4.16% to 31.96 euros around 10:15 a.m., the strongest increase in the CAC 40 after having climbed to more than 6%. Nissan’s price did not move in Japan, the Tokyo Stock Exchange both closed due to a holiday.

Casino degrad

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The action of the French distribution group Casino fell 8.59% to 7.67 euros, a sign of investor mistrust about the debt of the company, whose rating was downgraded by the rating agency Standard & Poor’s on Saturday. Since January 1, the title has lost two-thirds of its stock market value.

Luxury and tech still worth it

Sensitive to interest rates, which weigh on the valuation of their future profits, the values ​​of luxury and technology were still misguided.

Herms fell by 2.41% to 1,234.50 euros and LVMH by 2.31% to 603.70 euros. Bernard Arnault’s group publishes its quarterly results on Tuesday after trading and opens the CAC 40 publication season a step ahead.

In the technology sector, OVH (-3.70% 10.03 euros), Dassault Systemes (-1.94% 33.78 euros), or even Teleperformance (-0.74% 253.50 euros) lost ground.

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