Cac 40: The Paris Bourse continues a fifth consecutive session in the red

(BFM Bourse) – The CAC 40 ended Wednesday down 0.03%, a variation that masks the high volatility in session with more than 100 points of difference on the day.

Very undecided throughout the day on Wednesday, the CAC 40 recorded an amplitude of fluctuation of more than 100 points during the session (a gap of 1.5% between the high point and the low point), before closing close to l ‘balance at 7,042.23 points. Or a decline of 0.03%, symbolic at first glance, but which still marks the fifth consecutive session in the red for the barometer of the Parisian market. A sequence that had not happened since the beginning of the year – a short time, it is true, after a streak of 14 increases in the space of 15 sessions, unprecedented for the blow since the year 1999.

The trend was slightly negative across the Atlantic with 0.2% to 0.3% decline for the main US indices, while on the contrary bond yields started to rise again (1.667% for the ten-year Treasury bill) in a context giving credence to the idea of ​​inflationary pressures. Weekly jobless claims notably fell to 199,000 last week, the lowest since November … 1969, which suggests tensions on the job market and therefore on wages. At the same time, the price index known as “personal-consumption expenditures” (PCE) showed a strong increase, although in line with the expectations of economists. Despite the price hikes and shortages in some stores, American households nonetheless continued to consume and even at a faster rate than expected in October.

See also  The Paris Bourse breathes after a prosperous week (-0.78%)

The New York Stock Exchange will close its doors on Thursday, and will only open for half a session on Friday, which many investors will ignore, which should considerably reduce volumes, including in Europe.

In Paris Vivendi (+ 1.8%) took the top spot in the wake of the interest shown by KKR for Telecom Italia, in which the conglomerate holds a quarter of the capital. At the end of the session, Teleperformance, Vinci and even LVMH accelerated, increasing respectively by 1.2%, 1.13% and 1.1%. In contrast, Schneider Electric (-2.3%) increased its decline, affected by profit taking since a new historic high reached on Monday. ArcelorMittal dropped 2.1%, like Dassault Systèmes. Ultimately difficult to distinguish a clear sector trend in today’s report.

Note that Orange has not really suffered from the prospect of seeing Stéphane Richard leave the management as the end of his current mandate approaches, given his conviction on appeal in the Crédit Lyonnais case: the course of the operator limited his decline to 0.1% after even spending a good part of the session in the green.

Apart from the main sample, Vallourec (+ 7.6%) has chained a fourth session of rebound after its fall last Thursday. In fact, the stock has already more than made up for the -14.38% lost on the day it announced its third quarter results, now trading 14% above its level before this publication, or 38% taken back by compared to the low point of last Thursday!

Finding itself in the small papers of analysts, after the reserve period incumbent on those working for banks that participated in its IPO, the OVHCloud title was able to advance by 2.5%.

See also  Women in Science Scholarship: 89% of first winners chose to study engineering | News

While the Biden government’s announcement of a release of strategic reserves did not dampen crude prices on Tuesday, oil prices remained stable late Wednesday at $ 81.33 per barrel of Brent (unchanged) and $ 78.57 (+ 0.09%) for WTI. In the eyes of Craig Erlam, analyst at Oanda, by organizing the response of the oil-consuming countries, the President of the United States probably first sought to score political points before the mid-term elections, but the operators quickly integrated that this was not a game-changer in the market.

“The decision ticked a few boxes and, if played well, it is not likely to offend OPEC + excessively and trigger a reaction.” If they could very easily retaliate, it’s a safe bet that rather than engage in a price war, the group of producing countries will not be content to record a small victory while prices remain high and continue to roll out the program for the gradual increase in production as planned.

In terms of currencies, the euro tested the threshold of $ 1.12 for the first time since June 2020, down 0.44%. It must be said that, despite encouraging data for the euro zone (like the rebound in private sector activity in November, according to IHS Markit), “the dollar is benefiting from significant support, and in particular from strong monetary speculation. who are having a great time since the news fell Monday of the renewal of Jerome Powell at the head of the Federal Reserve, “observes Guillaume Dejean at Western Union Business Solutions. The continued escalation in consumer prices in October in the United States, given the rise in the Commerce Department’s PCE index (closely followed by the Fed), only reinforces the prospect of a tightening monetary policy in the United States earlier than in Europe, accentuating the attractiveness of the greenback.

See also  Teacher for care in the job-related area - SGB-Servicegesellschaft für Bildung mbH

Guillaume Bayre – © 2021 BFM Bourse

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.