(News Bulletin 247) – The Paris Stock Exchange had a difficult session, undermined by the comments of the President of the Fed on the timetable for rate cuts and disappointing company results. The CAC 40 lost 0.9%, to find itself below 7,600 points.
Today’s session was not punctuated by any records, as the euphoria at the start of the week gave way to disappointment. The American Federal Reserve asked the market for patience regarding future rate cuts, when the publications of three residents of the CAC 40 clearly stunned investors.
The CAC 40 therefore lost 0.89% and began the month of February below 7,600 points at 7,588.75 points. The Parisian index had not experienced such a drop since January 17 (-1.07%) given these unfavorable winds.
Operators had to digest as best they could the comments of Fed President Jerome Powell. 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.
It must be said that the latest statistic proves the head of the Fed right. Manufacturing activity in the United States recovered more than expected in January, shows the monthly survey from the Institute for Supply Management (ISM) published Thursday. The ISM manufacturing index came out at 49.1 points where the market expected 47 points, and after a revised figure of 47.1 for the month of December. However, it remains below 50, the threshold below which activity contracts.
The market will therefore feverishly await the federal report on private non-agricultural employment, expected for Friday. A report followed very precisely by the Fed as tensions on the job market can mechanically feed inflation, through wages.
Pluxee star of the day
On the corporate side, BNP Paribas had a difficult session (-9.2%) after results below expectations and the lowering of several targets by 2025. In its wake, the other banks folded with Société Générale which lost 4% when Crédit Agricole SA returned 2.8%.
Sanofi returned 4.1% after publishing this Tuesday a net income from activities lower than expectations and announcing the departure of its financial director.
However, it was Dassault Systèmes which suffered the most on the CAC 40, plunging 10.4% after publishing results and forecasts below consensus.
However, note the good debut on the stock market of Pluxee, a former subsidiary of Sodexo listed on Thursday, which jumped 15%. Sodexo, for its part, lost 5.5%, the victim of a transfer of value to its ex-subsidiary.
On other markets, the euro gained 0.45% against the dollar to 1.0863 dollars. Oil is appreciating. The April North Sea Brent contract gained 0.8% to $81.20 per barrel, while the March New York-listed WTI contract gained 0.9% to $76.50 per barrel.
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