(News Bulletin 247) – The Paris Stock Exchange continues its decline, undermined by market uncertainties over the timetable for rate cuts. The CAC 40 fell by 0.2% the day after a drop of 0.7%.

The Paris Stock Exchange is still losing ground this Tuesday. The CAC 40 lost 0.18%, to return below 7,400 points at the close on Tuesday evening, after having already conceded 0.7% on Monday.

Investors are navigating by sight and wondering about potential rate cuts from major central banks, while several members of the European Central Bank (ECB) have tried in recent days to calm market enthusiasm.

The Governor of the Bank of Austria, Robert Holzmann, warned on Monday that “no one should bet on a rate cut this year”. This Tuesday, François Villeroy de Galhau, his counterpart at the Bank of France, considered much more of a dove (a central banker who is worried about growth and employment and a little less about inflation than others central bankers), told Bloomberg TV that the question of a rate cut was “premature”.

Enough to fuel the rise in bond rates. The yield on the 10-year bond of the United States takes approximately 9 basis points (0.091%) this Tuesday to 4.041% against 3.944% Friday, Wall Street having been closed Monday due to a public holiday, the Martin Luther King Day.

In Europe, the yield on the German 10-year bond is also increasing, to 2.225%, and that of the French bond of the same maturity follows the same trajectory, to increase slightly to 2.749%.

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Dassault Systèmes shines

On the value side, Dassault Systèmes recorded the largest increase in the CAC 40 at the close. The professional software publisher thus gained 2.7%, driven by Deutsche Bank, which raised its recommendation on the value to “buy” against “hold”, judging that the title has an undemanding valuation, coupled with prospects attractive.

Vallourec ended the session with an increase of 1.6% supported by Bank of America which reinitiated its purchase coverage on the stock with a price target of 19 euros. The American establishment judges that the company appears attractive in comparison with its European competitors, with 1 billion euros of cash flow which could be generated over the financial years 2024 and 2025.

Conversely, Sartorius Stedim Biotech limited its decline to 2.3%, UBS having revised its opinion to “neutral” against “buy” previously, considering that the company has limited growth potential.

On the small and mid-cap side, Arcure soared by 16.9% the day after a 2023 activity point which convinced the markets.

On other markets, the euro fell 0.6% against the dollar, to 1.0882 dollars, the greenback benefiting from the rise in American bond yields. Oil is progressing. The March North Sea Brent contract advanced 0.9% to $78.88 per barrel, while the February contract for WTI listed in New York gained 0.6% to $73.25 per barrel.