(News Bulletin 247) – The CAC 40 chained a third session of decline, falling 0.94% at the close of Thursday. Rising bond rates weighed on risk appetite.

New difficult session for the Paris Stock Exchange. The CAC 40 ended down 0.94% on Thursday, at 7191.74 points, posting a third consecutive decline.

The rise in bond rates, caused by the “minutes”, i.e. the minutes of the last monetary policy meeting, of the American Federal Reserve (Fed), weighed on risk appetite .

Published Wednesday evening, “the minutes revealed concern on the part of members of the American central bank at the level of inflation.

“Indeed, the monetary institution’s report indicates that ‘most participants continued to perceive significant upside risks to inflation, which could necessitate a further tightening of monetary policy'”, notes John Plassard by Mirabaud.

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“Bad news”

This propelled US debt rates. The 10-year yield on the US Treasury bond rose above 4.3% to 4.304%, the highest level since the end of 2007. 10-year yields on European bonds also rose, that of France s establishing for example at 3.242% against 3.191% on Wednesday.

“It doesn’t matter whether or not you think the Fed will go through with what they said in their minutes. The fact is that 10-year yields are soaring, which in the modern handbook for stock traders, is bad news on several levels,” said Stephen Innes of Spi Asset Management.

Market operators also took note of the indicators of the day. New weekly jobless claims in the United States stood at 239,000, close to the expected figure (240,000) while the index of manufacturing activity in the Philadelphia region returned to green in August, at 12 against -10 expected and -13.5 the previous month.

Adyen collapses in Amsterdam

As for values, tech suffered from the rise in bond rates, OVHCloud losing 4.2%, Dassault Systèmes 3.3%. Worldline, which lost 3.5%, was also weighed down by the plunge of its Dutch competitor Adyen, which collapsed 39% on the Amsterdam Stock Exchange, after announcing half-year results well below expectations.

Only the defensive stocks Sanofi (+1.4%) and Carrefour (+1.1%) on the CAC 40 recorded slightly sharp increases, even if Société Générale (+0.3%) also progressed while Royal Bank of Canada raised its price target on the bank while maintaining its “sector performance” view.

The Canadian bank wonders if the bank of La Défense does not open “a new beginning” in its stock market history, judging that the reasons to believe in a “rerating” (an improvement in stock market multiples) of the bank exist. But proof on the execution must still be provided by Societe Generale, also considers Royal Bank of Canada, which prefers other shares in the sector, in particular BNP Paribas (+0.2%)

On the other markets, the euro lost 0.03% against the dollar at 1.0877 dollar. Oil prices are rising sharply. The October contract on Brent from the North Sea gained 1.7% to 84.70 dollars a barrel while that of September on WTI quoted in New York took 2% to 80.88 dollars a barrel.