(News Bulletin 247) – The Parisian index ended in bright red this Monday, weighed down by the frosty reception given to Société Générale’s strategic plan as well as by a barrel of Brent which is close to 95 dollars and fueling fears about the economic situation .
Very bad start to the week for the Paris Stock Exchange. The CAC 40 ended down 1.39% this Monday at 7276.14 points.
The rise in barrel prices continued to fuel fears about the economy, prompting investors to be cautious before the outcome of the meeting of the American Federal Reserve (Fed) on Wednesday evening.
The November contract for a barrel of North Sea Brent is close to $95 per barrel, increasing 0.8% to $94.70 per barrel. That of October on WTI listed in New York advanced 1.3% to 91.97 dollars per barrel. Black gold prices are at their highest levels since November 2022.
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“Already, the rise in oil prices must be seen as a new ‘tax’ on consumption, which should have a negative effect on activity,” underlines Sebastian Paris Horvitz, of LBPAM.
“Central bankers should take into account this recessive effect of the rise in the price of oil, while being concerned about its diffusion on the setting of companies’ sales prices, with the risk of further complicating the disinflation dynamic” , he adds.
Descent into stock market hell for Société Générale
On the value side, Société Générale and its long-term car rental subsidiary ALD suffered two plunges, losing 12.05% and 14.3% respectively, after presenting their medium-term objectives.
The La Défense bank also recorded its biggest drop in one session since March 15, 2023 (-12.18%) and the outbreak of fears about the health of Credit Suisse.
The market’s disappointments are multiple, with analysts highlighting for example that Societe Generale’s revenue trajectory (between 0% and 2% per year over the period 2022-2026) turned out to be lower than that of the consensus (+2, 7% per year).
Bouygues (-0.12%) intends to submit a proposed public buyout offer followed by a compulsory withdrawal targeting Colas shares that it does not hold at a price of 175 euros per share.
On the smallest capitalizations, Gensights Biologics took 75% while its American partner successfully produced a first batch of Lumevoq that complied with good manufacturing practice standards.
On currencies, the euro gained 0.33% against the dollar to 1.0695 dollars.
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