(News Bulletin 247) – The flagship index of the Paris Stock Exchange fell sharply this Friday while the 10-year yield on the American bond briefly exceeded 5% for the first time since 2007. The fault of Jerome Powell’s comments .
The Paris Stock Exchange is still suffering this Friday. At mid-session, the CAC 40 fell by 1.2% to 6,837 points, bringing its weekly decline to 2.4%.
The fault of Jerome Powell, the president of the American Federal Reserve (Fed). In an intervention made after the close of European markets on Thursday, the central banker – who had to be evacuated from the room where he was speaking due to interventions by environmental protesters – made certain restrictive remarks.
“Additional evidence of sustainably above-trend growth, or that labor market tensions are no longer easing, could jeopardize further progress on inflation and justify further tightening of monetary policy ” he said, according to comments cited by Deutsche Bank.
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L’Oréal resists
The executive then added a notable comment during the question-and-answer session, saying: “I think the evidence is not that the policy is too strict at the moment,” notes the German bank.
As a result, bond yields experienced a new surge of fever, with the yield on the 10-year US Treasury bond ending at 4.990% on Thursday evening and even exceeding 5% on Friday before falling back.
The market obviously continues to monitor the evolution of the conflict between Israel and Hamas in the Middle East, fearing repercussions on other countries.
On the value side, red is required with only a handful of stocks in the green like Renault (+0.8%) which is recovering from its 7.3% fall the day before or EssilorLuxottica (0.4%) which published activity deemed satisfactory by analysts.
L’Oréal lost 0.7%. The group published growth slightly below expectations in the third quarter mainly due to China, with an offensive on gray trade. But the company has managed to achieve solid growth in North America and Europe.
Verallia fell 3.4% following the publication of its third quarter accounts.
On other markets, the euro gained 0.07% against the dollar to 1.0592 dollars. Oil contracts are progressing. The North Sea Brent contract rose 1.2% to $93.5 per barrel while that of the same maturity on WTI listed in New York advanced 1.4% to $90.59 per barrel.
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