The volatile Paris Stock Exchange ends by limiting its losses – 2022-10-21 at 18:25


The Paris Stock Exchange experienced another volatile session on Friday and ended down 0.85%, weighed down by several corporate results and tensions in the bond market.

The star CAC 40 index fell 51.51 points to 6,035.39 points. However, it continues a third weekly increase of 1.74%, a gain of 4.74% in October.

The Parisian rating opened sharply lower, weighed down by generally unwelcome corporate results, in particular those of the heavyweights of the L’Oréal and Kering index.

It even widened its losses until it fell by more than 2% shortly before 3:00 p.m. But in one hour, she gained 100 points to return close to balance, before giving way again.

The instability was accentuated by a technical effect, with the expiry of options on stocks and indices and on futures contracts, in a session known as “the three witches.”

But investors have also been changeable about their anticipation of the US Central Bank’s (Fed) monetary policy.

After several statements by Fed officials on Thursday, they were convinced that the institution would continue to raise its main key rate sharply in the coming months to bring inflation back to its target of 2% at the risk of compressing credit and inflation. economic activity.

But the mood improved markedly after a Wall Street Journal article claimed that the Fed would discuss at its next meeting a slowdown in the hike in its main interest rate.

“The 0.75 percentage point rise in rates in November”, as in recent sessions, “could lead to a pause or a slowdown, starting in December”, retains Michael Hewson, analyst at CMC Markets.

The cost of French government borrowing thus reached a new 10-year high in session, at 3.09%, before falling back and ending at 2.96%.

Luxury shines less

The most important sector in the index, and which had carried the CAC 40 after the results of LVMH and Hermès, luxury this time weighed down the Parisian rating.

The momentum of the luxury division of cosmetics giant L’Oréal has worried investors, despite sales growth exceeding expectations. The action fell 5.80% to 310.10 euros.

Another sharp drop, Kering (-3.30% to 454.10 euros) was penalized by its Gucci brand, according to analysts at Oddo BHF.

For EssilorLuxottica, it is the optical division, “which shows signs of moderating growth in the main geographical areas” according to analysts at Bernstein, which penalized the action (-3.46% to 153.45 euros)

The other luxury stocks were also driven, such as the world number 1 LVMH (-0.39% to 631.50 euros), or Hermès (-1.62% to 1,304 euros).

Vivendi weighed down by Canal+

The French media giant recorded moderate growth in its activity in the third quarter, but the turnover of the Canal+ television group, the leading contributor to Vivendi’s turnover, fell over the quarter by 3% and even nearly 5% at constant data.

The action fell 2.88% to 7.88 euros. Its parent company, the Bolloré group, on the other hand, took 1.09% to 4.81 euros.

Among the other results of the day

Renault (+0.12% to 32.76 euros) published a turnover of 9.8 billion euros in the third quarter, posting an increase of 20.5% if we put aside its withdrawal from Russia.

Forvia, the entity that brings together automotive suppliers Faurecia and Hella, published sales figures up sharply in the third quarter, rebounding with global automotive growth. Faurecia shares fell 2.64% to 13.29 euros.

Covivio (-0.39% to 50.45 euros), Gecina (-2.75% to 82.05 euros) or even Tikehau (-0.41% to 24.30 euros) also did not progress after the publication of their results.

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