(News Bulletin 247) – The CAC 40 ended the session down 0.7% while managing to limit the damage at the end of the day. Cyclical stocks suffered fairly sharp declines.

Today’s session was quite strange for the Paris Stock Exchange. Initially in the green during the morning, the CAC 40 began to fall almost in a straight line from 11am until the mixed opening of Wall Street gave it a little boost. Shortly before the European close, the S&P 500 fell by 0.2%. The Paris index ended down 0.69% at 7,609.15 points.

These movements took place in a context of rising bond yields. The rate on the ten-year United States debt security rises 6 basis points (0.06 percentage points) to 4.314%. The yield on the ten-year French bond also increased by 6 basis points and that on the 10-year German Bund increased by 4 basis points. The spread between the two French and German bonds also stands at 71.9 basis points, whereas it had exceeded 80 basis points over the last two weeks.

The market digested restrictive comments from Federal Reserve (Fed) Governor Michelle Bowman, who said Tuesday that “we have not yet reached the point where it is appropriate to lower key rates,” according to Deutsche Bank.

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Eurofins regains ground

Investors are also awaiting the publication, on Friday, of the PCE index in the United States, the preferred gauge of the American Federal Reserve (Fed) to measure inflation.

On the value side, the majority of the CAC 40 saw red. Eurofins, however, recovered a little further (+3.1%) after losing more than 16% on Monday following the attack by short seller Muddy Waters, whose allegations were refuted by the company.

Several cyclical stocks fell significantly. Airbus lost 2.8% after having already lost 9.4% the day before following a profit warning, Bouygues dropped 2.7%, Renault 2.8%.

Sanofi gained 0.1% as, according to Bloomberg, the company launched a tender for its consumer health division for a direct sale. At the same time, the pharmaceutical group continues to prepare a potential IPO for this activity.

On other markets, the euro fell 0.35% against the dollar to 1.0679 dollars. Oil is sluggish. The August contract on North Sea Brent lost 0.07% to 84.30 dollars per barrel, while that of the same maturity on WTI listed in New York lost 0.2% to 80.70 dollars per barrel .