The Paris Stock Exchange fell 0.65% on Tuesday, reacting negatively to the Bank of Japan’s (BoJ) surprise announcement of a change in monetary policy, which had so far remained ultra-accommodative unlike other central banks.
The forefinger in the foreground CCA 40 it fell 42.29 points to 6,431.19 points. It rebounded 0.32% on Monday after a turbulent week.
Analysts had not expected any changes in Japanese monetary policy and were surprised by the BoJ’s decision to change its tight grip on Japanese bond yields.
The monetary institution has announced that it will now tolerate a fluctuation in yields on Japanese ten-year government bonds between -0.5% and +0.5%, “in order to improve the functioning of the market”. Until then it had set a ceiling of 0.25%.
“The change may seem minor, but it is the first change in monetary policy since the implementation of this tool in 2016!” comments Christian Parisot for the broker Aurel BGC.
Tokyo stocks fell and the yen jumped on this announcement. Interest rates also ran on the bond market, that of 10-year French debt was worth 2.79% against 2.72% the day before.
In the Europegarlic United Statesin the UK or even Australia, central banks have tightened their monetary policy in an attempt to bring inflation to an acceptable leveland, which has hurt the economy this year.
At the end of the year, investors are worried about the growth prospects for 2023.
Michael Hewson, an analyst at CMC Markets, doubts in this context the feasibility of the traditional “Christmas rally”, a rally in stock markets regularly observed around the end of the year holidays, when volumes dry up.
“The reality is that everyone who made money this year will be content to keep their gains, while others are unlikely to want to compound their 2022 misery with potential further losses,” he said.
Strong impact for Engie
Engie share dropped by 6.36% to 13.07 euros, after the energy company assessed the impact on its operating result in 2023 of the new European contribution to the profits of energy groups in an amount between 1.2 and 1.5 billion euros.
Tariffs lead to real estate
The real estate values They were penalized on Tuesday by rising interest rates, which could slow down the housing market.
Elior and Derichebourg mix
the collective catering group Elior announced it had “signed a memorandum” with its main shareholder, the Derichebourg recycling group, to acquire its multi-service division “DMS”, an operation financed through a capital increase which will see Derichebourg rise to 48.4% of Elior.
The Elior share gains 8.06% to 3.41 euros while that of Derichebourg lost 2.75% to 5.30 euros.
Le Revenu, with AFP