The Paris Stock Exchange retreats after 4 rising sessions
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(News Bulletin 247) – The Paris Stock Exchange opted for a drop on Wednesday after four sessions of progression in a row. Geopolitics was recalled to the good memories of the markets after the fall of a missile in Poland. Another notable fact of the day, better than expected retail sales in the United States which further reduce the chances that the Fed will be less aggressive on its rates.

End of series. The Paris Stock Exchange ends its bull run, and ends down 0.52% at 6607.22 points this Wednesday evening.

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Investors took notice earlier in the afternoon of a higher than expected increase in retail sales in the United States. A robust statistic that further reduces the chances that the Fed will be less aggressive on its rates.

Geopolitics remained in the background of this session after the fall of a missile in Poland.

Polish President Andrzej Duda said there was no indication that his country had been the target of a deliberate Russian attack. “We have no evidence that the missile was launched by Russian forces, it is highly likely that it is a missile used by Ukrainian defense forces,” he said, quoted by the Reuters agency. Same speech on the side of NATO whose Secretary General, Jens Stoltenberg, said that there was no indication that the country had been the subject of a deliberate attack.

Earlier, US President Joe Biden said it was “unlikely” the missiles were launched from Russia. A caution that was also welcomed by Moscow.

Record inflation in the UK

“While it is too early to draw conclusions about this event, the reaction of the Poles, the United States and NATO is cautious […] limiting the risk of a major escalation between NATO and Russia,” said Xavier Chapard of La Banque Postale Asset Management.

The markets are also taking note of the new acceleration of British inflation which reached 11.1% over one year in October, a new high since 1981.

In terms of values, Somfy is at the top of the SBF 120, and gained nearly 22% after the announcement of a simplified takeover bid by the Despature family to delist the group.

Alstom on the right track

Alstom for its part grew by more than 7%, driven by half-year results that exceeded expectations and in particular a generation of cash close to balance.

The resurgence of geopolitical tensions is also benefiting Defense groups, Thales recorded the second strongest rise in the CAC 40 (+2.6%) while Dassault Aviation, the manufacturer of the Rafale, rose by 1.4%, the two groups having experienced respective peaks at 3.8% and 4.7% during the session.

At the other end of the spectrum, Air France-KLM fell 10.5% after launching an issue of hybrid debt securities and while Air France faces the risk of a strike for this winter.

Missed opportunity for Kering

Kering lost 1.7% after being overtaken by Estée Lauder in the race to buy Tom Ford

As for the smallest caps, Voltalia lost 5.5% after announcing a capital increase of nearly 490 million euros.

On the other markets, the euro fell back to $1.04 for the first time since early July. Oil contracts have swung sharply into the red. North Sea Brent crude for January delivery fell 2.1% to $91.93 a barrel while New York-listed WTI for December delivery fell 2.8% to $84.50 a barrel.