(News Bulletin 247) – The flagship index of the Paris market is moving clearly in the red at mid-session this Thursday, while the Fed has, in summary, asked the market for patience regarding future rate cuts. BNP Paribas falls after record yet disappointing results.

Very hectic session for the Paris Stock Exchange this Thursday. Investors must digest numerous company results as well as the outcome of the meeting of the American Federal Reserve (Fed). A cocktail which turns out to be bitter for the CAC 40, down 0.9% at mid-session to 7,590.16 points.

The Fed kept rates unchanged Wednesday evening, a decision that was anything but surprising. The issue lay much more in the comments surrounding this announcement, in particular those of its president, Jerome Powell. However, the central banker has clearly tempered the enthusiasm of the market, which before this meeting was counting on rate cuts from March. From 60%, the probability given by investors to such a movement has now fallen to 35%, according to the CME Group’s FedWatch tool.

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BNP Paribas falls

“The president of the Fed confirmed that monetary policy would be eased in 2024, specifying however that the gesture did not seem imminent. A few weeks ago, the markets saw a first rate cut in March as a virtual certainty, now, it would rather be May”, summarize the economists at Oddo BHF.

Fed officials have “made clear they need to see more progress on inflation before cutting borrowing costs, leaving little hope for a rate cut next March.” agrees John Plassard of Mirabaud. “Mars is no longer the reference scenario,” concludes Bank of America.

On the corporate side, BNP Paribas is suffering and not just a little, falling 7.7% after results below expectations and the lowering of several targets by 2025. In its wake, other banks are under pressure , Société Générale losing 2.8% and Crédit Agricole SA 2.1%.

However, it was Dassault Systèmes which fell the most on the CAC 40, plunging 11.6% after publishing results and forecasts below the consensus.

However, we will note the good debut on the stock market of Pluxee, a former subsidiary of Sodexo listed on the stock market this Thursday, which gained 7.1%. Sodexo for its part lost 4%, victim of a transfer of value to its ex-subsidiary.

On other markets, the euro lost 0.2% against the dollar to 1.0803 dollars. Oil is moving forward a little. The April contract on North Sea Brent lost 0.9% to $81.22 per barrel, while the March contract on WTI listed in New York gained 0.9% to $76.56 per barrel.