(BFM Stock Exchange) – The Parisian star index is poorly oriented this Monday, May 19, reacting negatively to the degradation by Moody’s of the sovereign note of the United States.

The Paris Stock Exchange begins this new stock market week in the red. The CAC 40 cedes 0.74% to 7,828.48 points this Monday, May 19, investors being little willing to take risks with regard to an uncompromising news.

After winning 1.85% the previous week, the Parisian index dropped down in reaction to degradation on Friday May 16 by Moody’s from the sovereign note of the United States. The rating agency has deprived the American debt of its precious note AAA to demo it to AA1 with a stable perspective.

This decision weighs on the bond market. The return on bonds at 10 years in the United States 10 years changes more than 4.50% when the 30-year-old has just crossed the only symbolic of 5%, a first since October 2023. The greenback has abandoned land against the single currency after the decision of Moody’s, and currently yields 0.75% to treat itself to 1.1273 dollars for one euro.

The CAC 40 also took note of a downward revision of growth prospects in the euro zone for the current year and the next one. The European Commission expects an increase in gross domestic product (GDP) of 0.9% in 2025 and 1.4% in 2026, and justifies this revision by the customs duties of the Trump administration.

Getlink at a stop

On the values ​​side, Getlink gives 2.2% while the Manager of the Channel Tunnel announced the suspension for two weeks of the Eleclink interconnection, an electric cable that connects the United Kingdom and France via the Channel Tunnel. Getlink estimates that around 20 million euros the shortfall linked to this interruption.

The luxury sector is not at the party, after the publication of disappointing retail sales in China. Hermès restores 2.7%, Kering yields 2.1%while LVMH retrocede 1.8%.

“Retail sales increased only by 5.1 %, which is significantly lower than previous expectations and figures. This situation testifies to the persistent weakness of consumer confidence, the current slowdown in the real estate sector continuing to weigh heavily on consumption and private investment,” said Dilin Wu Strategist at Pepperstone.

Oil is decreasing after deteriorating the American debt note. The price of the barrel of Brent from the North Sea, for delivery in July cedes 0.90% to 64.83 dollars, while a barrel of WTI, for delivery in June, also gives 0.90% to $ 61.41.