Paris Stock Exchange celebrates and then disappoints after Fed – 05/05/2022 at 19:01

Paris Stock Exchange celebrates and then disappoints after Fed - 05/05/2022 at 19:01

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The control room of Euronext, the company that manages the Paris Stock Exchange, at La Défense (AFP / ERIC PIERMONT)

The control room of Euronext, the company that manages the Paris Stock Exchange, at La Défense (AFP / ERIC PIERMONT)

The Paris Stock Exchange, which had opened sharply the day after the Fed meeting, finally ended its session with a fall on Thursday, affected by US markets and the general economic context.

The star CAC 40 index lost 27.28 points at 6,368.40 points. The previous day it had fallen by 1.24%.

The Paris Stock Exchange, however, had started the day with a rise of 2.40% to 6,549.49 points, the highest level for the session. The index slowly declined and stopped after the opening of US markets.

“Investors were reassured yesterday about the pace” of the US Federal Reserve’s key interest rate hike, Pierre Blanche, head of financial intelligence at the Amundi Institute, told AFP.

Bank President Jerome Powell rejected any rate hikes of 0.75 percentage points, a prospect that has shaken markets for days.

The Fed opted for a half-point increase in this session and is expected to maintain that trend for at least the next month.

This information was transferred to Wall Street on Wednesday and then to the European stock market. However, US markets moved in the opposite direction on Thursday, losing more than 3% shortly after the closing of Paris.

“The general trend is not very good” between the closures in China and the war in Ukraine, Mr Blanchet recalled.

The sharp rise in inflation, which could even exceed 10% in the UK according to the Bank of England, is also changing the market, making it more difficult for tech stocks, which prefer a low-interest environment. .

Government interest rates, which set the trend for the rest of the economy, continued to rise sharply: the French 10-year interest rate reached 1.57%, while the US interest rate jumped over 3% to 3.08%.

Finally, the euro also fell more than 1% against the dollar (-1.04% to $ 1.0512 around 6:45 pm), which benefits from its safe haven and monetary policy. tightening of the Fed.

The Airbus is taking off

Shares of Airbus rose 6.28% to 109.02 euros, after the European aircraft manufacturer more than tripled its quarterly profits over the year to 1.22 billion euros. Airbus has also shown great ambition, aiming for a monthly production of 75 A320 in 2025, unprecedented for its one-star aircraft.

Air France-KLM, which divided its losses in the first quarter by three and said it was optimistic about the summer, also recorded 2.05% at 3.99 euros.

Crédit Agricole and Société Générale were circling

Crédit Agricole Bank fell 4.01% to 9.98 euros, after announcing net profits down 24.1% in the first quarter.

Societe Generale fell 2.56% to 22.43 euros after announcing a slight increase in net profit in the first quarter. Its action had suffered long after the outbreak of war in Ukraine from Russia, where the bank operates but from which it will disengage.

For its part, BNP Paribas lost 0.61% to 50.70 euros.

Euronext CAC40

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