(BFM Exchange) – The CAC 40 he withdrew sharply in mid-session and did not recover from the Federal Reserve’s tightening of monetary policy. Airbus However, it resists this bad trend thanks to the announcements about the shareholder return policy.
It was a difficult week for the Paris Stock Exchange, which had to withstand the renewed tensions in the Ukrainian conflict and especially the announcements of the American Federal Reserve (Fed). Still sounded by the American central bank announcements, the CAC 40 it lost 2.13% around 12:55 to 5,792.47 points, having already lost around 1.9% the day before. For the week as a whole, the Parisian index is heading towards a decline of more than 3.5%.
“Most of the major central banks continue their fantastic race against inflationary pressures. The race to tighten monetary policy can be described as historic in scope 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 on the direction of monetary policy for the next few months. Not only will the increases continue, but they will take place at a rapid pace”. “Indeed, the Fed wants to move quickly towards a monetary policy that will clearly be tight, or towards positive real rates,” he adds.
“With Wednesday’s sharp rate hike set to continue throughout the year in the United States (and around the world), then the question arises as to what the impact of the real economy will be,” alongside him John Plassard, specialist in investments at Mirabaud.
As for the indicators, the area PMI indices EUR, which measure private sector activity in the monetary union, were not encouraging. The composite index, which includes manufacturing activity and services, stood at 48.2 in September, the lowest in the last 20 months. Recall that a PMI below 50 indicates a contraction of the activity, above 50 its expansion. “The September PMI surveys are consistent with a slight decline in GDP for the area EUR in the third quarter “, judge Capital Economics.
. In other other markets, theEUR fell 0.7% against the dollar, to $ 0.9766, the lowest in 20 years, the greenback benefited from its safe haven status. The price of oil also fell. The contract on the Brent for delivery in November it loses 2% to 87.79 dollars while that of the same deadline on WTI the quoted on the Nymex fell by 2.2% to 81.67 dollars.
From a value standpoint, red is obviously a must and car suppliers are particularly impressed. Faurecia loses 6.2%, Valeo drops by 4.8% while Akwellwhich published half-year results in sharp decline, fell 2.1%.
The business transformation consulting group Micropole precipitated 15%, half-yearly results having been eroded by the costs involved in attracting talent.
Airbus resists, and takes 0.3%, signing the only increase of CAC40 after his driving pledged to improve shareholder returns, citing possible share buybacks.
M6 for its part takes 8.2%, still benefiting from renewed speculative interest while it owns it RTL Group has decided to put its 48% stake in the French audiovisual group up for sale.
Bic for its part took 2.2% supported by UBS which started its purchase hedge on the stock.
Julien Marion – © 2022 BFM Stock Exchange