(News Bulletin 247) – The CAC 40 is falling mid-session this Thursday, in the wake of Wall Street which experienced a correction the day before.
Is the market slowly starting to reach its limits? The Paris Stock Exchange is in any case moving downward this Thursday, the CAC 40 losing 0.58% to 7539.44 points at mid-session.
Like all other markets, the Parisian market is suffering from profit-taking by investors, while the CAC 40 is currently showing an increase of more than 16% over the whole of 2023.
The movement started on Wednesday evening around 8 p.m., when the American indices turned around before closing sharply lower, with the S&P 500 losing 1.47% at the end of the session.
“The markets suddenly changed gear yesterday (Wednesday) at the end of the session in the United States, with the S&P 500 posting its biggest daily decline since September,” notes Deutsche Bank. “The market losses occurred as part of a broader movement to reduce risk appetite,” adds the German bank.
>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio
Stocks that are starting to get expensive
This profit-taking movement is being observed as investors are increasingly optimistic about future key rate reductions from major central banks, including in particular the American Federal Reserve (Fed).
“In fact, futures now price a 92% chance of a cut by March, as well as cuts of 152 basis points (1.52%, Editor’s note) in total by the December meeting 2024,” notes Deutsche Bank.
“We could start to wonder if investors have not already largely ‘consumed’ the Fed’s rate cut expectations and if they will not start to look a little more closely at the micro/results aspect of the companies, in an environment where shares are starting to be expensive again”, underlines Alexandre Baradez, head of market analysis at IG France.
On the value side, Sanofi lost a little ground (-0.3%) after announcing the cessation of the development of a potential treatment for lung cancer. Teleperformance recorded the largest increase in the CAC 40, with an increase of 2.3%, while Royal Bank of Canada reiterated its advice to “outperform” on the value.
On other markets, the euro gained 0.2% against the dollar to 1.0965 dollars. Oil is losing ground. The February contract on North Sea Brent lost 0.3% to $79.45 per barrel while that of the same maturity on WTI listed in New York fell 0.2% to $74.11 per barrel.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.