The Paris Stock Exchange ended the session on Tuesday with a drop of 0.54%, overtaken by the fears of investors on Wall Street, in the midst of the corporate earnings season.
The star CAC 40 index lost 34.81 points to 6,414.57 points. The day before, it had fallen by 2.01%.
The Parisian coast had however opened higher, and had continued to progress towards 5,535 points (+ 1.3%) in the early afternoon. But the sluggishness of the American markets has completely reversed the trend.
We are awaiting the results of the index heavyweights, such as Microsoft and Alphabet, so investors are a little on the edge, explains Guillaume Chaloin, director of equity management at Meeschaert Amilton AM.
The big names in tech are expected at the turn, in a context of high inflation and rising interest rates, which weigh more particularly on this sector and its high valuations on the markets.
After a series of quarters of flamboyant results, the good surprises are greeted modestly, but the bad surprises severely, like that of Netflix (-35%) last week, continues Mr. Chaloin.
Especially since in addition, we accumulate negative points on the indices, believes the manager. Inflation is at the peak in Western countries, and central banks seem ready to slow down the economy to combat it. In China, the sanitary confinements against Covid-19 are also weakening production chains and global growth.
It may be a peak of pessimism while waiting for better signals on some of these fronts, continues the manager.
On the bond market, the French 10-year bond rate remained stable at 1.31%, while rates in the United States fell more sharply, the 10-year rate moving away from the level of 3% (2.74%).
Internal report at Orpea
The manager of private nursing homes Orpea, in turmoil since the release of the investigative book Les Fossoyeurs, published Tuesday the first conclusions of an external audit which confirms dysfunctions within the group, particularly concerning its use of public funds. The title fell 8.27% to 31.60 euros, down 64.13% since January 1 and nearly 20% in April.
Faurecia dvisse
Retirement : save by paying less tax. 11 contracts compared
Faurecia tumbled 10.74% to 20.45 euros, after results weighed down by the war in Ukraine and the resurgence of Covid in China and with the announcement of the postponement of its capital increase operation, which was intended to lower the group’s debt after the acquisition of the German Hella.
Renault (-4.30% to 22.12 euros), Stellantis (-3.47% to 12.39 euros), Michelin (-2.05% to 114.55 euros), also suffered.
EssilorLuxottica and Alstom launch legal proceedings
The optical giant EssilorLuxottica (-2.14% to 160.40 euros) has filed a complaint against the American bank JPMorgan Chase, which it accuses of not having alerted it to fraudulent activities involving more than 270 million dollars embezzled for the benefit of notch companies.
For its part, Alstom (-5.90% to 20.57 euros) announced that it had filed a request for arbitration before the International Chamber of Commerce, accusing the Canadian Bombardier of breaching certain contractual provisions after the acquisition of Bombardier Transport, finalized at the beginning of 2021.