The control room of Euronext, the company that manages the Paris Stock Exchange, in La Défense, November 21, 2019 (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.21% on Wednesday, weakened in the second part of the session by tensions over Ukraine and pending the publication of the minutes of the Fed’s monetary policy meeting.
The star CAC 40 index lost 14.99 points to 6,964.98 points. The day before it had rebounded by 1.86%, after a sharp drop of 2.27% on Monday.
The Parisian rating had started the day on the rise, exceeding 7,030 points before turning around at the start of the afternoon, still tossed about by the news on Ukraine.
The United States has “not seen a Russian withdrawal” from the Ukrainian borders, despite Moscow’s announcements, said Wednesday the head of American diplomacy Antony Blinken. The threat from Russia “is there, it is real”, he said on the American channel ABC.
“The two factors of concern in the markets at the moment, Ukraine and inflation, are colliding: the fears linked to rising prices, inherent in the recovery of the economy, are amplified by the rise in oil prices “, in particular the consequence “of geopolitical tensions”, affirms Alexandre Neuvy, director of private management of Amplegest.
The combination of the two factors “makes the market under pressure”, he continues.
Another sign of caution, yields on the bond market eased, a sign that investors preferred to position themselves on assets perceived as safer. The French 10-year rate stood at 0.74%, while it had exceeded 0.80% at the start of the day.
Investors are now awaiting the publication of the minutes of the last meeting of the US Federal Reserve’s monetary policy committee, at 8 p.m., which should provide new indications on the pace of the planned monetary tightening.
Inflation is at a level not observed for four decades in the United States (7.5% over one year in January).
FDJ, Nexan and Vicat hailed, not Bic
The results of La Française des Jeux (+2.97% to 37.84 euros), which raised its targets for 2025, of Nexan (+6.42% to 82.00 euros), which doubled its net profit in 2021, or the cement manufacturer Vicat (+4.52% to 39.30 euros) were welcomed by investors.
On the other hand, Bic, who mentioned “headwinds” forcing him to price increases, lost 1.55% to 47.04 euros.
Oil companies take advantage of rising prices
The new rise in oil prices, 2.62% to 95.70 dollars for Brent at the time of the Paris close, benefited the stocks most sensitive to black gold, such as TotalEnergies (+0.82% to 51 .42 euros), Vallourec (+8.95% to 8.46 euros), CGG (+7.67% to 0.82 euros) or even TechnipFMC (+4.42% to 6.01 euros).
© 2022 AFP
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