(News Bulletin 247) – The CAC 40 is stable at mid-session, after experiencing a significant series of declines. Bond yields, although down slightly this Wednesday, are moving at significant levels.
The Paris Stock Exchange is having difficulty moving forward. After suffering four consecutive sessions of declines, the CAC 40 fell very slightly by 0.03% to 7071.68 points.
In this day lacking in important economic indicators, investors continue to monitor bond yields.
On Tuesday, the yield on the 10-year US Treasury bond reached 4.54%, its highest level in around sixteen years, but fell to 4.498% this Wednesday. The 10-year German Bund rate reached 2.808% on Tuesday, the highest since 2011. It nevertheless fell to 2.788% this Wednesday.
“Over the past few days a wave of doubt about the future has overwhelmed the market, drowning the appetite for risk. This has been fueled by long-term interest rates which have reached, on both sides of the Atlantic, levels which had not been seen for more than 10 years. Doubt seems to have somewhat undermined the dominant scenario on a soft landing of the American economy, in particular, which would succeed in maintaining growth relatively solid, while inflation should gradually decline”, underlines Sebastian Paris Horvitz, of LBPAM.
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Teleperformance downgraded by UBS
On the value side, Voltalia plunged 14% after having revised downwards its gross operating profit target for 2023 due to a power outage in Brazil that occurred in mid-August which penalized the network connections of its power stations.
Arkema rose 1.4% after revealing its ambitions for 2028, targeting in particular 12 billion euros in turnover and a gross operating margin (Ebitda) of 18%.
Teleperformance fell 3% while UBS went from “buy” to “neutral” on the stock, judging that the outsourced customer relations group faces “a long battle” to regain market confidence.
On other markets, the euro continues to fall against the dollar, losing another 0.1% to 1.0559 dollars, the lowest since February. Oil prices are increasing. The North Sea Brent contract for delivery in November gained 0.8% to $93.17 per barrel while that on WTI listed in New York advanced 1.1% to $91.43 per barrel.
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