The Paris Stock Exchange fell on Friday morning, at the start of the last session of a catastrophic year for stock markets, amid the impacts of the war in Ukraine and central banks’ fight against inflation.
The top CAC 40 index fell 0.58%, to 6,535.36 points, at around 11:35am (08:45am GMT). On Thursday, the Parisian stock jumped 0.97%, following in the footsteps of Wall Street.
The penultimate US economic statistic of the year delighted investors on Thursday: US weekly jobless claims rose more-than-expected last week, a sign for markets of the efficiency of the US central bank’s (Fed) key rate hikes .
Friday’s Chicago area activity index PMI numbers alone are likely to enliven the final session of 2022, which will most likely be held with anemic trading volumes.
At this stage, the Paris star index CAC 40 is down by more than 8% compared to December 31, 2021, the year in which it closed with a leap of 28.85%.
Nothing to be ashamed of, because the Paris stock exchange resisted the headwinds of 2022 better than the American S&P500 index or other European markets, such as Frankfurt.
Looking ahead to 2023, the big concern for investors is whether the economy will resist central bank interest rate hikes to bring inflation down to the right level.
“Recession, inflation and stagflation are likely to dominate the headlines next year»warns Ipek Ozkardeskaya, an analyst at Swissquote Bank.
He notes, like many analysts, that the year was “terrible” for almost all assets due to the central banks turning off the free money taps.
“Everything has gone wrong this year except for energy and the dollar»summarizes.
For Ipek Ozkardeskaya, this burdened economic context, and a brake on the markets, could “worsen in the first quarters of next year»because “central banks still have plenty of cheap cash waiting to be withdrawn» steps.
Many analysts believe that an economic recession, and therefore a decline in profits, is inevitable in 2023, which could continue their decline in stock indices.
Green light for AB Science
French biotechnology AB Science announced Thursday evening that it has received approval from the US health authority (the FDA) to begin a Phase 3 confirmatory study of its lead molecule, masitinib, for the treatment of progressive forms of plaque sclerosis. Its share rose by 10.95% to 7.45 euros.
Luxury and technology in small dimensions
Luxury and technology stocks fell, negatively impacted by rising bond yields.
Hermes down by 1.41% to 1,464 euros, LVM extension lost 0.73% to 691.40 euros e Kering 0.55% at 479.95 euros. From a technical point of view, World line dropped by 0.89% to 36.62 euros, Athos 1.46% at 9.04 euros and STMicroelectronics 0.64% to 33.30 euros.
Le Revenu, with AFP