(News Bulletin 247) – At the end of a session that breathed a wait-and-see attitude, the CAC 40 rose by 0.26%. The market awaits the outcome of the Federal Reserve meeting. Landowners have suffered.

The Paris Bourse signed a session on Wednesday without much movement. What changes the last very volatile days. The CAC 40 ended on a small increase of 0.26% to 7,131.12 points. The market has been reassured since Monday afternoon on the state of the banks.

“Every day that passes without drama brings us closer to the moment when we can put the mini-banking crisis behind us. But it is still early days and investors are only too aware of it, which is why we are currently seeing a timid recovery. “, analyzes Craig Erlam of Oanda.

See you tonight for the Fed

Investors avoided too much risk-taking on Wednesday pending the outcome of the Federal Reserve (Fed) meeting, which will announce its decision on its key rates at 7 p.m.

For now, investors are attributing an 86% probability to a rate hike of 25 basis points, or 0.25 percentage points, according to data from the CME Group. The US central bank must strike a balance between preserving the financial system, which has been battered in recent weeks since the collapse of Silicon Valley Bank (SVB), and the need to rein in persistent inflation.

The Fed and the American authorities reacted quickly to the shock wave caused by the bankruptcy of SVB. The US central bank notably provided liquidity via a new credit facility for banks under pressure.

“The effectiveness of these mechanisms should precisely make it possible to maintain, or even continue, the monetary tightening effort undertaken, while avoiding periods of intense financial stress such as in 2008. It is therefore a safe bet that the American Federal Reserve confirms an increase in its key rates of 25 basis points”, during this meeting, estimates Benoît Peloille, strategist-manager at Vega Investment Managers.

Landowners in the hard

On the values, the movements come back on fairly tight variations.

Bureau Veritas (-2.4%) found itself under pressure following the launch by its reference shareholder Wendel of a bond issue exchangeable for existing Bureau Veritas shares. Fnac Darty rose 0.2% while Czech businessman Daniel Kretinsky increased its stake, exceeding 25%, according to a notice published by the Autorité des marchés financiers.

Land companies have suffered for their part. Unibail-Rodamco-Westfield lost 7.2%, Klépierre 6%, Covivio 4.6%, Gecina 3.9%. A financial intermediary attributes this movement to the rise in interest rates on bonds, which weakens the assets of property companies. “Movement [sur les taux, NDLR] is not huge but the context is not the same”, he explains.

This expert underlines that the financing conditions with the recent crisis of confidence of the markets on the banks can tighten. This could ultimately lead smaller, unlisted players to experience difficulties and sell properties and thus create downward pressure on real estate assets.

On the other markets, the euro rose 0.2% against the dollar to 1.0792 dollars. Oil prices are changing little. The contract on Brent North Sea for delivery in May takes 0.6% to 75.76 dollars a barrel while that of the same expiry on WTI listed in New York advances by 0.6% to 69.99 dollars the barrel.