The Paris Stock Exchange continues to fall, confirming that the jump on Wednesday, before the monetary decision of the fedIt was just a breather. Since then, the US central bank has announced a third consecutive 75 basis point hike in its key interest rates, putting pressure on its counterparts around the world. The continued contraction of activity in the eurozoneboth in services and in the manufacturing industry, it is also confirming fears of a recession in the Old Continent.
Midway through the session, the bedroom 40 It fell 1.25% to 5,844.29 points and returned to the “bear market” zone after falling more than 20% from its record on January 5. It thus joins the S&P 500 in New York, for which Goldman Sachs lowered its target to 3,600 points at the end of the year, compared to the previous 4,300. the contracts future on American indices yield between 0.8% and 1%.
the PMI indices Preliminary September data released by S&P Global for the euro zone fell 1.6 points respectively to 48.5 in industry and 0.9 points to 48.9 in services, marking 27-month and 19-month lows. The threshold of 50 points marks the limit between the growth and contraction of the activity. ” A recession is looming in the euro zone, as companies in the region have reported a deterioration in the economy, as well as rising inflationary pressures, linked to rising energy prices. writes Chris Williamson, chief economist at S&P Global. And to add that ” Monetary policymakers face an increasingly difficult challenge: controlling inflation and avoiding a hard landing for the economy. “.
The Fed sets its pace
For those who still doubt it, the Federal Reserve sent a message that could not be clearer. The Fed is willing to tolerate a recession as the price to pay for regaining control of inflation. ” The problem with this approach is that it has the undesirable side effect of forcing other central banks to try to keep pace in order to contain the inflationary shock caused by the increase in the dollar against your own currencys,” warns Michael Hewson, chief market analyst at CMC Markets.
The Bank of England, the Bank of Norway and the Swiss National Bank therefore raised its interest rates yesterday, while the Bank of Japan (BoJ) has passed. On the other hand, it intervened in the foreign exchange market for the first time since 1998, to stop the fall of the yen. The latter recovered somewhat against the dollar. But this intervention does not address the root cause of the weakness of the Japanese currency: the huge gap between the ultra-accommodative policy of the BoJ and that of the other central banks.
Airbus confirms, M6 coveted by MFE
Total Energies fell 2.9%, the movement of monetary tightening around the world reinforced fears about demand.
Banks are dragged down by Credit Suisse, which hit a record low in Zurich, after testing investors for a capital increase, according to sources cited by Reuters. In Paris, General Partnership 2% drop and BNP Paribas 1.6%.
Greater increase in the Cac 40, Airbus increased by 2%. As part of its investor day, the aircraft manufacturer confirmed its goal of delivering around 700 aircraft this year despite the difficulties encountered in its supply chain. He also says he is committed to strengthening shareholder returns.
M6 jumped 8.6% after an article from the print according to Silvio Berlusconi’s MediaforEurope media group will present a non-binding cash offer for 48.3% of the capital of the French chain offered for sale by Bertelsmann.
Nexity yields 4.6%. Oddo BHF downgraded the developer’s title to “underperforming” from “neutral”.
Neoen drop of 7.9%, weighed down by a note from Citi, which went from “neutral” to “sell” on the title. The same intermediary began to monitor Environment Veolia (-2.3%) to “neutral” up to the target of 21 euros.