The Paris Stock Exchange ended up 0.74% on Tuesday, as a crucial US Federal Reserve meeting begins to determine the extent of monetary tightening in the coming months.
The star index CAC 40 took over 50.17 points 6,837.96 points. The day before, it had fallen by 3.97%.
The Parisian side rebounded from the open, maintaining its rebound throughout the session with the exception of a soft spot shortly after the sharply lower opening of the American markets.
Among the multiple sources of headaches for investors, the measures to be announced on Wednesday, after the Paris closing, by the American Federal Reserve, figure prominently.
The Fed is changing market assumptions, explains Patrice Gautry, economist at Union Bancaire Privée. Acceptable valuation levels are no longer the same with more restrictive interest rates, he adds.
The American institution has changed its tune, now targeting the control of inflation as the main objective and no longer the return to full employment, which has now been achieved.
To do this, it intends in particular to raise its key rates and reduce the balance sheet of its assets. But investors are still at the betting stage on the timing and strength of that tightening.
Rather reassured in mid-December, after the last meeting, market players have been warm since.
The last press conference was not transparent about the desire to reduce the balance sheet so quickly. The publication of the minutes, the detailed report of the discussions, and the hearings of Jerome Powell before the Congress showed that the institution could harden its tone, according to Mr. Gautry.
The IMF has also warned that increases in interest rates by central banks, including the US Federal Reserve (Fed), could cause corrections in the markets, which the institution considers overvalued.
It also reduced its global growth forecasts and now expects gross domestic product to rise by 4.4%, down 0.5 percentage points from its October projections.
In addition, the geopolitical concerns remain, the United States showing itself ready Tuesday, in the event of Russian attack of Ukraine, to prohibit the export towards Russia of American technologies, according to a high official of the White House.
Orpea tumbles again
The quotation of Orpea resumed at midday after a 24-hour interruption and the group plunged 20.35% to 55.18 euros, after a fall of more than 16% the day before. The publication on Wednesday of a book denouncing serious shortcomings in its nursing homes led to this movement, despite the denials of the leaders.
Other groups in the same sector have been affected, including Korian, which lost 4.80% to 22.62 euros, after a fall of nearly 15% on Monday.
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Unibail and banks are leading the rebound
The glove of the Unibail-Rodamco-Westfield shopping centers led the rebound of the CAC, taking 3.38% 63.67 euros.
Banks also occupied the top of the ranking, with +3.26% to 62.06 euros for BNP Paribas, +2.97% to 32.04 euros for Socit Generale and +1.65% to 13.07 euros for Crédit Agricole, the sector benefiting the prospect of rising rates.
Record sales for Interparfums
Interparfums shares soared 7.50% to 68.80 euros after the group announced that it had achieved record sales in 2021, rebounding strongly after the pandemic, but was cautious for 2022 due to tensions over supply chains.
Another business result, the spirits group Rémy Cointreau lost 2.08% to 187.90 euros after announcing a further marked increase in its turnover in the third quarter of its fiscal year.