The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.44% on Thursday, after three sessions of gains, with the market holding its breath ahead of speeches by central bankers in Jackson Hole on Friday.
The star CAC 40 index fell 32.16 points to 7,214.46 points. On the first four sessions of the week, it still takes 0.70%.
As in the first three sessions of the week, the Parisian odds started with their feet on the floor, even approaching 7,350 points in the first exchanges. But as always, the momentum ran out of steam, but more pronounced so that the CAC 40 ended in the red.
Even Nvidia’s spectacular results did not give the markets enough energy: in the same sector, STMicroelectronics, up sharply at the start of the session, finally finished in last place in the index, down 2, 48% to 42.51 euros. On the broader SBF 120 index, Soitec even lost 4.71% to 170.05 euros.
The results “are however the most beautiful of the season, 30% higher than expectations” emphasizes Frédéric Rozier, portfolio manager at Mirabaud.
“But that’s not enough anymore, the markets are too focused on central banks,” before the start of the Jackson Hole annual meeting, he continues.
Investors are groping on their forecasts of the next decisions of the American central bank and need “a pivot” according to him, to better understand when the key rates of the institution will stop rising, or even fall.
Jerome Powell, the president of the Fed, must speak Friday at 4:00 p.m., an hour and a half before the closing of the Paris Stock Exchange. Christine Lagarde, President of the European Central Bank (ECB), will speak as European markets are closed.
The equity markets were also penalized by “the battery of macroeconomic statistics not exciting” during the week, notes the manager, starting with the leading indicators of activity unveiled on Wednesday and confirming the slowdown in growth.
The release of the statistics initially lifted the indices as doubts about growth raised hopes among investors that central banks would ease monetary policy. This effect had led to lower rates, a rather favorable trend for equities.
Thursday, the rate of the French 10-year loan, the maturity which refers was almost stable at 3.03%, after having fallen to 2.97% at the start of the day.
Caution dominates
A sign of the caution that has set in on the markets, the companies that have best resisted the trend are those favored by investors in the event of doubts about economic activity.
Danone took 0.68% to 53.26 euros, Air Liquide 0.53% to 162.70 euros, and Engie 0.29% to 14.69 euros.
© 2023 AFP
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