Cac 40: Still hit by rate hikes, the Paris Stock Exchange continues to fall

(BFM Bag) – The ACC 40 it pulled back sharply mid-session and did not recover from the Fed’s monetary policy tightening. Airbus However, it bucks this bad trend thanks to the announcements about the shareholder return policy.

It was a tough week for the Paris Stock Exchange, which had to weather the renewed tensions in the Ukrainian conflict and especially the announcements from the US Federal Reserve (Fed). Still buzzing with announcements from the US central bank, the ACC 40 it lost 2.13% by 12:55 to 5,792.47 points, after already losing around 1.9% the day before. For the week as a whole, the Parisian index is heading for a drop of more than 3.5%.

“Most of the major central banks are continuing their fantastic journey to fight inflationary pressures. The race to tighten monetary policy can be described as historic in its scale and speed,” said Sebastian Paris Horvitz of La Banque Postale Asset Management.

The Fed wants to move fast

For this financial intermediary, “there is no ambiguity about the course of monetary policy for the coming months. Not only will the increases continue, but they will occur at an accelerated pace.” “In fact, the Fed wants to move quickly toward monetary policy that will be clearly tight, or toward positive real rates,” he adds.

“With Wednesday’s sharp rate hike set to continue throughout the year in the US (and around the world), then the question arises what the impact will be on the real economy,” said John Plassard, investment specialist at Mirabaud.

Regarding the indicators, the PMI indices of the zone euro, which measure private sector activity in the monetary union, have not been encouraging. The composite index, which includes manufacturing activity and services, stood at 48.2 in September, a 20-month low. As a reminder, a PMI below 50 indicates a contraction in activity, above 50 its expansion. “September PMI surveys are consistent with a slight drop in GDP in the area euro in the third quarter,” judge Capital Economics.

L’euro dives

. In other other markets, theeuro It fell 0.7% against the dollar to $0.9766, a 20-year low, with the dollar benefiting from its safe-haven status. Oil prices are also falling. The contract on Brent for delivery in November lost 2% to 87.79 dollars while that of the same expiration in the WTI listed on the Nymex fell 2.2% to $81.67.

On the value side, red is obviously de rigueur and auto suppliers are particularly suffering. Faurecia loses 6.2%, Valeo falls 4.8% while akwellwhich published half-year results with sharp falls, fell 2.1%.

The Business Transformation Consulting Group micropole plummeted 15%, its half-year results having been eroded by the costs required to attract talent.

Airbus resists, and takes 0.3%, signing the only increase in the CAC40 after his leadership pledged to improve shareholder returns, citing possible share buybacks.

M6 for its part keeps 8.2%, still benefiting from the renewed speculative interest while its owner RTL Group has decided to put up for sale its 48% stake in the French audiovisual group.

Bic, for its part, took 2.2% supported by UBS, which began its purchase coverage of the stock.

Julien Marion – ©2022 BFM Bourse

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