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 report 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 coast had started the day on the rise, exceeding 7,030 points before turning around in the early afternoon, still tossed about by the news on Ukraine.
The United States did not see a Russian withdrawal from the Ukrainian borders, despite Moscow’s announcements, notably declared 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 to the markets at the moment, Ukraine and inflation, are colliding: the fears linked to the rise in prices, inherent in the recovery of the economy, are amplified by the rise in oil prices, in particular the consequence of geopolitical tensions, says Alexandre Neuvy, director of private management at 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%, whereas it had exceeded 0.80% at the start of the day.
In a market that has a fairly strong propensity to react to bad news, the results of good quality companies allow the indices to hold up, however, according to Mr. Neuvy.
Investors are now awaiting the publication of the minutes of the last meeting of the monetary policy committee of the American Federal Reserve, 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), forcing the Fed to change its gear, even if it means making financing conditions less advantageous for the markets.
Air Liquide confident for 2022
Air Liquide (+2.68% to 148.40 euros) posted net profit for 2021, up 5.6% compared to 2020 in a context of a sharp and continuous rise in energy prices, and is optimistic for 2022, counting on energy transition markets.
Retirement : save by paying less tax. 11 contracts compared
FDJ, Nexan and Vicat salus, not Bic
The results of the Française des Jeux (+2.97% to 37.84 euros), which raised its objectives for 2025, of Nexan (+6.42% to 82.00 euros), which doubled its net profit in 2021, or of cement manufacturer Vicat (+4.52% to 39.30 euros) were welcomed by investors.
On the other hand, Bic, which mentioned headwinds forcing price increases, lost 1.55% to 47.04 euros.
Oil companies benefit from 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% 8.46 euros), CGG (+7.67% 0.82 euros) or even TechnipFMC (+4.42% 6.01 euros).