Monday, January 24

The Paris Bourse caught up with monetary and health fears

The control room of Euronext, the company that manages the Paris Stock Exchange ERIC PIERMONT

The Paris Bourse was down sharply, by 1.25%, Tuesday in the first exchanges, investors showing themselves fearful between the anticipation of a monetary tightening earlier than expected in the United States, and the health situation which is deteriorating in Europe.

The CAC star index fell sharply from 82.50 points to 7,016.50 points around 9:30 p.m. The day before, he had lost 0.10%.

The Parisian rating is on the way to a fourth consecutive session of decline, which had not happened since mid-August.

“The probabilities of an interest rate hike [directeurs] have regained the ascendancy “after the renewal at the head of the American Federal Reserve (Fed) of Jerome Powell, remarks John Plassard, investment specialist at Mirabaud.

“The tightening of monetary policy has now been launched. And the pressure is all the stronger as the White House is now closely monitoring the development of inflation,” also adds Tangi le Liboux, broker analyst Aurel BGC.

Jerome Powell, who has yet to be confirmed by the Senate, assured Monday that the Fed would act so that inflation does not “take root” while the pace of price increases is the fastest in decades.

The markets are therefore now anticipating a first interest rate hike by the Fed earlier than a few weeks ago, and a further reduction in its support for the economy.

As a result, bond market yields rose, and the dollar strengthened.

In addition, “the evolution of the pandemic is back in the trading rooms as the main point of attention”, also notes Christopher Dembik, director of strategy and macroeconomics of Saxo Bank.

Thus, Germany was deeply concerned on Monday about the rise in Covid-19 contaminations, which led Washington to advise Americans not to go there.

“The situation on the front of the pandemic is tense in France. We will certainly not avoid new restrictive measures”, also believes Mr. Dembik, which risks weakening the pace of economic recovery.

Growth in private sector activity in France accelerated in November thanks to services, according to a provisional index released Tuesday by IHS Markit.

Despite a decline in manufacturing production, the Flash index which measures this activity reached its highest level in four months, at 56.3 against 54.7 in October, specifies the cabinet. A value above 50 indicates an expansion of activity, a value below this level indicates a contraction.

Trigano brakes hard

The number one European motorhome Trigano plunged 10.65% to 155.20 euros after the publication of its results on Monday. The group warned in its outlook that “the strong growth in demand will not translate into a proportional increase in sales due to supply difficulties”, which could last beyond the first half of the year. Oddo BHF analysts also lowered the stock’s recommendation to “neutral”, according to financial agency Bloomberg.

  1. Euronext CAC40

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