(News Bulletin 247) – The Paris Stock Exchange is unable to extricate itself from its downward trend. Pressure is mounting as talks of raising the US debt ceiling are still stalled. The good news delivered by Nvidia makes it possible to limit the breakage. The CAC 40 lost 0.3% Thursday evening the day after a decline of 1.7%.

The Parisian market is caught between two opposing forces. On the one hand, anxiety is mounting as discussions on raising the debt ceiling stall and on the other, investors are amazed by Nvidia which has given complete satisfaction after high-flying quarterly results and exciting prospects.

The company indeed delivered, Wednesday evening after the closing of Wall Street, a publication which delights the market. At the start of the session, the Nvidia title jumped 25.7%, pulling the Nasdaq (+1.4%) up.

The announcements of the American group allows investors to forget a little the interminable file of the American debt ceiling, which is the subject of tough negotiations between Republicans and Democrats. President Joe Biden and the leader of the Republicans in the House of Representatives, Kevin McCarthy, are struggling to agree.

This stalemate prompted Fitch to apply pressure. The rating agency has placed the US credit rating (AAA) on negative watch for a potential downgrade precisely because of the risk of default. Fitch, however, expects a resolution of this file.

In this context, the CAC 40 ended down 0.33% to come dangerously close to the threshold of 7,200 points on Thursday evening. At 7229.27 points, the star index in Paris has been testing levels that have been more explored since the end of March. On Wednesday, the CAC 40 had suffered a heavy decline of 1.7%. For now, it is losing 3.5% over the week.

To do nothing to help the trend, Germany fell into recession. The evolution of the gross domestic product for the first quarter has been revised downwards, from 0% to -0.3%, after a drop of 0.5% in the last three months of 2022.

Aramis presses the accelerator, Soitec helped by Nvidia

As for values, the movements are contained on the CAC 40. But outside the benchmark index, Aramis Auto jumped 13.9% thanks to good half-year results.

Soitec for its part rose by 8% carried by Morgan Stanley which initiated its coverage to “overweight” the action.

On other markets, the euro lost 0.2% to 1.0723 dollars. Oil prices are giving ground after their recent rise. The North Sea Brent contract for July delivery plunges 3.8% to $75.42 a barrel while the New York-listed WTI contract dips 4.1% to $71.27 a barrel .