(News Bulletin 247) – The Parisian index is moving down very sharply at mid-session on Thursday, the minutes of the last Fed meeting weighing on the trend.

Tough session for the CAC 40. The Parisian index shows a drop of 1.7% at mid-session on Thursday, to 7185.18 points, on track to align a fourth session in the red.

“The market is suffering from a double negative effect. For several days, the economic indicators have not been good, in Europe and Asia, as we saw again on Wednesday with the PMI Services. And moreover, the equity indices are penalized by the voluntarist and restrictive speeches of intent of the central banks which we already know (for the Fed, the American Federal Reserve, and the European Central Bank, the ECB) that they will certainly raise their rates in July. then the doubt about a second consecutive increase, doubt which will last until September”, develops Alexandre Baradez, head of market research at IG France.

This observation was reinforced by the publication Wednesday evening of the “minutes”, that is to say the report, of the last monetary policy meeting in June of the Fed. The US central bank then paused its rate hikes.

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Cyclical stocks in trouble

“You can see in the minutes that this June break was sharply debated and was not a consensual break. Perhaps the market is questioning its relevance, wondering if it might not have been better to win a months of intervention capacity of the Fed against inflation”, raises Alexandre Baradez who recalls that “the market is asking questions about the repercussions of the tightening of monetary policies on the economy”.

Bond rates reflect these expectations of monetary tightening, with a yield on the two-year US Treasury now close to 5%, a stone’s throw from its highs of early March.

In this context, cyclical stocks are struggling on the CAC 40, especially technology stocks, Capgemini losing 3.3% and STMicroelectronics 2.8%. The same is true for the banks with BNP Paribas which fell by 3.3% and Société Générale which lost 2.6%.

Publicis, for its part, experienced a brief spike at more than 5% before falling back (-0.2% at mid-session), with speculation of a hypothetical interest from Vincent Bolloré via Vivendi, following a article of Challenges.

Euronext dropped 2.8%, suffering from a downgrade by Deutsche Bank, which lowered its recommendation from “buy” to “hold”.

Small positive point all the same: the IPO of the low-carbon water desalination specialist Osmosun was a hit with investors, the stock offer having been largely oversubscribed. The IPO price was set at 6.5 euros at the top of the indicative range previously communicated by the group. The IPO will take place next Monday.

On other markets, the euro gained 0.3% against the dollar at 1.0889 dollars. Oil prices are stable or almost stable. The September contract on Brent from the North Sea lost 0.16% to 76.54 dollars a barrel, while that of August on WTI listed in New York yielded 0.03% to 71.77 dollars a barrel.