The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/ERIC PIERMONT)
The Paris Stock Exchange closed down 1.87% sharply on Thursday, barely accepting the US central bank’s determination to raise its main key rate sharply and longer than expected.
The star index CAC 40 fell 112.83 points to 5,918.50 points, the day after an attempted rebound (+0.87%).
The Paris rating opened sharply lower before rising later in the day. But the awakening of the US markets caused it to sink again. In ten days it went from more than 6,300 points to a level that brings it closer to its lowest point of the year (5,795 points on July 5).
The Federal Reserve on Wednesday raised its main rate by 0.75 percentage point, taking it to a range of 3% to 3.25%. They were just above 0% at the beginning of the year.
Overall, the message from IDB Chairman Jerome Powell was that rates would go “higher” and stay there “longer” than market expectations so far, says Benjamin Melman, chief investment officer at Edmond de Rothschild AM.
Some investors were “still considering rate cuts through 2023” as Fed members’ forecasts now point to a rate of around 4.5% by the end of the current year and by 2023, he supports.
In the debt market, France’s interest rate for the 10-year loan rose to a new high since 2014, standing at 2.52% after hitting 2.55% a little earlier.
The banking sector was excited by the context of rate hikes: at the top of the CAC 40, Societe Generale rose 1.60% to 23.51 euros, BNP Paribas 0.53% to 48.22 euros and Crédit Agricole n yielded only 0.32% to 9.16 euros. .
All companies in the real estate sector suffered this Thursday, such as the shopping center giant Unibail-Rodamnco Westfield, which fell 5.98% to 45.82 euros, the worst fall in the CAC 40.
Among the rest of the sectors that traditionally suffer from this context, technology (STMicroelectronics -5.96% to 34.66 euros; Teleperformance -5.11% to 262 euros), luxury (Hermès -4.92% to 1,208 euros; LVMH -2.91% to 624.90 euros), or even quite indebted companies, such as Alstom (-5.27% to 17.88 euros).
The radio and television group M6 (+6.37% to 13.35 euros) is once again the subject of a “market test” by its owner RTL Group, a subsidiary of the German Bertelsmann, after the failure of its merger with TF1 (+1.66). % to 6.44 euros) for reasons of competition, AFP learned on Thursday.
In addition, Canal+ (owned by Vivendi +0.14% at 8.39 euros), is not obliged to broadcast TF1 channels again in its satellite offer according to an order from the Paris Commercial Court of which AFP was informed this Thursday.