(News Bulletin 247) – The Paris Stock Exchange closed on a feverish note, investors remained on their guard in the wake of the violent wind of panic that shook global indices. The CAC 40 fell 0.27% to 7,130.04 points on Tuesday evening.

Stunned by a particularly trying session on Monday, the Paris Stock Exchange seemed disoriented. The attempt to rebound (+0.49%) in the morning was cut short, before the CAC 40 sank below 7,100 points in the afternoon (-1.09% to 7,070.02 points).

The CAC 40, however, managed to limit the damage by losing 0.27% to 7,130.04 points, partially regaining its spirits with the rebound of the American markets. At the close of the European stock markets, the Dow Jones rose by 0.9%, the Nasdaq and the S&P 500 rebounded by 1.3%, the three major American indices also tried to get going again after their violent fall.

A few corporate publications also livened up the session in the United States. Uber jumped by almost 9% and benefited from a quarterly publication above expectations.

A feverish market feeling

Markets are still on guard as the moves are exacerbated by the traditional August liquidity shortage. According to Quincy Krosby, of LPL Financial, quoted by Bloomberg, “the market is oversold and needs to rebound.” “The question now is whether the concerns that sent the market into a cascade of selling have been alleviated. Pockets of volatility are likely to remain,” he said.

“The markets are feverish and they should remain so for a long time to come,” adds Christopher Dembik, investment strategy advisor at Pictet Asset Management.

“We do not expect a lull in the coming days. It is unlikely. We risk having a cascade of margin calls that will amplify the decline,” continues the specialist who considers an emergency intervention by the American Federal Reserve “lunar”.

“By the way, we don’t see how a rate cut by the Fed would succeed in stemming the panic,” he says.

The US employment report for August “will probably be the determining factor in the rate cut trajectory,” Lombard Odier said. “This could be either 50, 25 and 25 basis point cuts in September, November and December respectively, or three rounds of 25 basis point cuts,” the asset manager continued.

Airbus on the rise

On the business side, news remains limited at the beginning of August. Among the biggest risers in the CAC 40, we find Airbus, which rose by 1.95% after announcing a rebound in its deliveries of new aircraft in July, to 77 units after 67 in June and only 53 in May.

On the SBF 120, Clariane jumped 9.9%. The retirement home operator confirmed its annual targets after publishing improved half-year results.

On the foreign exchange market, the euro fell 0.3% to $1.0922. On the oil price side, the October contract on North Sea Brent rebounded 0.8% to $76.94 per barrel, while the September contract on WTI listed in New York climbed 1% to $73.67 per barrel.