The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / Eric PIERMONT)
The Paris Stock Exchange ended down 1.39% on Tuesday, after five consecutive sessions of increases, the trend reversing abruptly after the publication of inflation in the United States, down but stronger than expected.
The star CAC 40 index fell 87.90 points to 6,245.69 points. The day before, it had gained 1.95%, amplifying the rebound initiated at the beginning of September.
Inflation in the United States rose slightly by 0.1% in August compared to July, while economists had forecast a contraction of 0.1%.
Over one year, it reached 8.3%, less than July’s 8.5%, but more than the 8% forecast by the market.
Investors have been hoping since the summer for a shift by the American Central Bank (Fed) towards a more accommodating policy, based on the assumption that the peak of inflation has been reached. A showered hope on Tuesday.
“Concretely, this report shows more persistent inflation than expected, which should push the Fed to be even more aggressive, potentially raising its rates beyond 4%,” said Valentin Aufrand, independent analyst. They were close to 0% at the start of the year, and are currently in the 2.25%-2.50% range.
After several rising sessions, the euro also fell again against the dollar and returned close to parity (-1.18% to 1.0003 around 6:00 p.m.).
Engie rises ahead of European Commission proposals
Engie signed the best performance in the CAC 40, rising 2.90% to 13.37 euros, carried by rumors before the publication in the week of a detailed legislative project from the European Commission on the energy crisis in the continent.
European energy ministers will meet again on September 30 in Brussels to discuss emergency measures, we learned on Tuesday.
technology in distress
The heat on rates has put pressure on technology stocks, which are dependent on credit conditions to finance their growth. Dassault Systèmes fell 4.31% to 37.75 euros, STMicroelectronics 3.32% to 35.69 euros, Capgemini 2.54% to 178.15 euros.
Conversely, this climate allowed the banks to resist, even if the prospects of a recession caused by an overly restrictive monetary policy handicapped them: Crédit Agricole fell only 0.21% to 9.70 euros, Société Générale from 0.31% to 24.24 euros, BNP Paribas from 0.53% to 50.29 euros.
© 2022 AFP
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