The Paris Stock Exchange is falling again on Friday morning, in the wake of a second consecutive decline on Wall Street. The renewed tension on interest rates has refocused the debate on the Fed’s monetary policy, while operators are also sanctioning some disappointments among the quarterly publications of the day.
Around 9:45 a.m., the Bedroom 40 fell 1.58% to 5,990.80 points in a volume of 360 million euros.
In New York, the S&P 500 swung from a gain of more than 1% in Thursday’s session to a decline of 0.8% at the close. In question, the surge in the yield of the US 10-year bond to more than 4.2%, its highest level since June 2008 after the “hawkish” remarks of Patrick Harker. Philadelphia Fed Chairman Says Central Bank Should Hike Rates “ well beyond by 4% to keep them at restrictive levels for a while to fight inflation.
” It’s the U.S. bond market that really leads the major markets, and while liquidity is an issue, the fact is that there are simply no buyers. summarizes Chris Weston, Head of Research at Pepperstone.
Released on Thursday, the weekly jobless claims figures fell to their lowest level in three weeks, reflecting continued tensions in the labor market, which is a problem for the Fed. The latter is indeed counting on a rise in the unemployment rate to bring down inflation.
L’Oréal and Kering sanctioned
On the foreign exchange market, the pound sterling lost 0.3% to 1.1206 dollars after jumping Thursday on the announcement of the resignation of British Prime Minister Liz Truss. During the 45 days of his stay at 10 Downing Street, the British currency lost up to 8% against the euro and more than 10% against the dollar. The Conservative Party has given itself a week to find a successor among three candidates, but the two finalists could be known as early as Monday before an appointment next Friday. Former Chancellor of the Exchequer Rishi Sunak is the favorite, while Boris Johnson could try his luck.
Renault loses 1.9%. The manufacturer confirmed its objectives for 2022, while its turnover increased by around 20% in the third quarter, benefiting from a record price effect. The title, which rose by 5% this week, especially since the group will hold its investor meeting on November 8, including details on the evolution of the Alliance with Nissan and the new medium-term prospects.
EssilorLuxottica down 2.8%. The ophthalmic optics giant has nevertheless reiterated its long-term prospects, after the increase in its turnover in the third quarter. If the sales are above expectations, Bernstein underlines that they are contrasted according to the regions, with a weak progression in North America.
Kering fell 4.4% The luxury group announced a higher-than-expected increase in turnover in the third quarter thanks to the dynamism of its activity in Europe, but the growth in sales of its strong brand Gucci was less important than ‘expected. Moreover, the group’s sales growth is lagging behind that of its competitors.
L’Oreal loose 4.2%. The cosmetics giant reported solid revenue growth in the third quarter. But the brand’s customers seem to be focusing on consumer products, which marks a turnaround while the high-end pole (Lancome Paris, Ralf Lauren), the group’s traditional engine and more profitable, is notably penalized by the confinements. in China.