Thursday, December 9

The Paris Bourse ends down 0.85% at 7,044.62 points

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

The Paris Bourse ended sharply down 0.85% on Tuesday, facing the prospect of monetary tightening from the US central bank which raised interest rates.

The flagship CAC 40 index dropped 60.38 points to 7,044.62 points, recording a fourth session of decline in a row, which had not happened since mid-August. The day before, it had lost 0.10%.

The Parisian rating began the day down, worried about the evolution of the pandemic in Europe, where the resurgence of cases is pushing the authorities to take restrictive measures.

The American authorities have thus advised their population to avoid going to Germany and Denmark, hit hard by the new wave of contamination.

“Investors fear the return of certain lockdowns, curfews, which are restrictions that can automatically hamper recovery and growth,” commented to AFP Philippe Cohen, portfolio manager at Kiplink Finance.

But for now, he notes a “resilience of growth”, in the latest publication of the firm IHS Markit: the growth of private sector activity in France accelerated in November thanks to services.

Mr. Cohen remains optimistic about the recovery: “Consumption patterns have evolved so much that even with health restrictions, a consumer can go through other distribution channels which are now well oiled.”

Equities were also penalized by a sharp rise in interest rates on the bond market, in the wake of expectations of an imminent hike in key rates by the Federal Reserve (Fed).

In the wake of the rise in bond rates, tech stocks fell significantly: STMicroelectronics by 3.96% to 43.90 euros, Téléperformance from 3.39% to 347.60 euros and Capgemini by 2.84% at 205.40 euros.

In a context of rising interest rates, investors usually shy away from technology stocks because they need to borrow at low rates to generate the growth on which their stock market valuation is based.

In response to the takeover offer from US fund KKR, Vivendi, the main shareholder of Telecom Italia (TIM), said it had “no intention of selling its stake” in the company. Vivendi shares fell 0.58% to 11.20 euros.

The number one European motorhome Trigano plunged 10.48% to 155.50 euros after the publication of its results. The group warned in its outlook that “the strong growth in demand would not translate into a proportional increase in sales due to supply difficulties”, which could last beyond the first half of the year.

  1. Euronext CAC40

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