(News Bulletin 247) – The CAC 40 ended Monday’s session down more than 1%, bending under profit taking. Vinci’s fall weighed on the index as the Wall Street shutdown weighed on volumes.

Correction session for the Paris Stock Exchange, which clearly lacked catalysts to continue its progress, this Monday. After taking 2.4% over the whole of last week, the CAC 40 returned 1.01% to 7314.05 points. Volumes were penalized by the absence of many American operators, while Wall Street is closed on Monday, the day of commemoration of the end of slavery in the United States.

This profit-taking comes, therefore, after an excellent performance of the equity markets, which cashed without batting an eyelid the warnings of the American Federal Reserve (Fed) and the European Central Bank (ECB).

“While the two main central banks, the Fed and the ECB, have instead shifted their rhetoric towards more tightening, or at least maintaining tight monetary policies for some time, equity markets remain relatively resilient. So today “Today, the market saying not to fight central banks seems to be under attack,” said Sebastian Paris Horvitz of LBPAM.

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Towards consolidation?

But now some caution could be observed on the indices. “The risk for the financial markets in the coming months is to be confronted with weak economic growth, or even a risk of recession in the United States (if we consider the trajectory of the leading indicators as reliable), all in a monetary context which can still harden”, considers Alexandre Baradez, market analyst at IG France.

“Companies’ annual projections, which were fairly well oriented during the first quarter’s publications, could require a downward revision in certain sectors. And therefore encourage the consolidation of stock market indices whose valuations have clearly become ‘generous’ again in view of the macroeconomic outlook “, he argues.

Eiffage and Vinci in the hard

As for values, the construction and concessions groups Vinci (-4%) and Eiffage (-5.4%) fell while the Council of State returned, according to The echoesa notice to the government in which it issues a green light to a potential surcharge on motorway companies, but with conditions.

Sartorius Stedim plunged 12.8% on market sanction for issuing a resounding earnings warning.

Getlink took 2.22% carried by Morgan Stanley which raised its board to “overweight”, against “online weight” previously.

Note that on this opening day of the Paris Air Show, Safran won 1.7%, raising the CAC 40. The share of the group led by Olivier Andriès could potentially benefit from the announcement of its comparable, MTU Aero, which took nearly 4% on the Frankfurt Stock Exchange. The German engine manufacturer raised its financial forecasts for the 2023 financial year at the start of the morning.

Airbus for its part finished slightly in the green (+0.2%). The record mega-order of 500 A320 Family planes by airline IndiGO did not have a significant impact on the aircraft manufacturer’s stock. As we explained in an introductory article, the market is already well aware of the strength of demand for single-aisle aircraft and is more concerned about the supply and production rates of aircraft manufacturers.

On the other markets, the euro lost 0.16% against the dollar at 1.0927 dollars. Oil contracts are falling. The August North Sea Brent contract fell 0.2% to $76.46 a barrel, while the July New York-listed WTI contract fell 0.2% to $71.62 a barrel.