The Paris Stock Exchange ended down 1.04% on Thursday, weighed down by the luxury, technology and energy sectors, in a context of economic uncertainty and rising bond rates.
The flagship CAC 40 index lost 64.57 points to 6,157.84 points, after its third consecutive session of decline in the wake of the publication on Tuesday of US inflation figures for August, which came out higher. expectations and pave the way for a sharp rate hike from the US central bank (Fed) when it meets in a week.
This prospect puts the market in a “feeling of expectation and uncertainty”, notes Frédéric Rozier, portfolio manager at Mirabaud France.
“A 100 basis point increase is present in the minds, which is rather reassuring because if the Fed opts for an increase of 75 basis points”, the market could relax slightly, estimates Mr. Rozier.
In France, inflation reached 5.9% over one year in August, INSEE said on Thursday.
Banque de France Governor Francois Villeroy de Galhau expects European Central Bank rates to rise to a “neutral” level near 2% by December, before going further depending on the inflation.
Last week, the ECB decided to raise rates by 75 basis points, not seen since 1999, and warned that further rate hikes would follow.
In addition to monetary policies, “a lot of things prevent long-term investments from positioning themselves”, says Mr. Rozier, who cites in particular “the weather, a notable uncertainty for this winter because within ten degrees it changes the growth trajectory “.
The gloomy economic outlook lowered oil prices by around 3.5% around 4:25 p.m. GMT, dragging down energy stocks like TotalEnergies (-2.40% to 50.03 euros).
High rates penalize tech and luxury
Sovereign rates are reaching very high levels on the bond market, in the wake of investors’ expectations of a sharp rise in Fed rates.
This trend weighed on the technology sector which needs low rates to finance its growth and on luxury companies which risk seeing their profits valued more weakly.
Dassault Systèmes lost 4.07% to 36.41 euros, Capgemini 3.98% to 171.20 euros and Atos 4.52% to 8.78 euros.
Hermès lost 3.86% to 1,245.50 euros, Kering 2.87% to 504.20 euros and LVMH 1.96% to 641.40 euros.
Arthur Sadoun reappointed as head of Publicis
The Publicis group announced that the renewal for a period of four years of the mandate of Arthur Sadoun as CEO had been approved Monday by the supervisory board. The action gained 1.69% to 52.84 euros.
Pierre et Vacances finalizes its restructuring
The European leader in leisure residences, Pierre et Vacances, has succeeded in its financial restructuring which should enable the group created in the 1960s by Gérard Brémond to get out of debt and make a fresh start. The action fell 3.28% to 1.24 euros.