Tuesday, May 17

The Paris Stock Exchange is back in the red

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

The Paris Stock Exchange was down 0.27% in the first trade on Thursday, hesitating between China’s more flexible monetary policy and that of the stricter Western central banks.

After opening up, the CAC 40 index fell 19.08 points to 7,153.90 points shortly after 9:20 a.m. The day before, it had increased by 0.55%.

Unlike Western central banks, which are tightening the screws in the name of fighting inflation, China’s central bank took a second step toward more accommodative policy on Thursday.

Under the pressure of an economic recovery that is running out of steam and a real estate sector weakened by its debts, the institution lowered one of its reference interest rates, the “loan prime rate” (LPR) to a year to reduce borrowing costs in the market.

Beijing had already lowered the mandatory reserve rate for banks in December, that is to say the share of deposits they are required to keep in their coffers.

Equities also benefited from a lull in bond market rates. Positive during the morning on Wednesday, for the first time since May 2019, the 10-year German Bund returned to negative (-0.01%) while the American rate for the same maturity was at 1.85%, below the peak of 1.90% picked up the day before.

“Nervousness could however go up a notch in session”, warns John Plassard, investment specialist at Mirabaud. US markets showed signs of weakness again on Wednesday, with the Nasdaq now more than 10% below its late November peak.

“In 2022 the rules of the game will change if the American Federal Reserve (Fed) is no longer able to support the markets at the slightest opportunity”, also underlines Tangi Le Liboux, analyst of the broker Aurel BCG.

The fight against galloping inflation has been made a priority by US President Joe Biden and by the Fed, which will soon resort to several rate hikes to try to stem the rise in prices.

In addition, across the Atlantic, after the banks, it is the turn of technology stocks to show their annual results, with Netflix first on Thursday.

Full order book for Alstom

The railway manufacturer Alstom (+ 1.85% to 34.16 euros), at the head of the CAC saw its turnover and its order intake increase in the third quarter of its staggered fiscal year, allowing it to post a book of record orders and to confirm its forecasts.

Soitec in the crisis

The company specializing in semiconductors announced on Wednesday the imminent departure of its general manager, a decision contested by the executive committee which had asked to “stay” it. It fell 11.51% to 179.70 euros.

The other French specialist in the sector, STMicroelectronics, lost 0.10% to 41.13 euros.

Valneva, new hope on its vaccine candidate

After its sharp fall on Wednesday (-12%), i.e. a halving of its value since its peak at the end of November, Valneva rebounded by taking 21.87% to 16.86 euros. The Franco-Austrian laboratory has announced that a preliminary study has shown that three doses of its vaccine candidate induce “neutralization” of the Omicron variant.

  1. Euronext CAC40


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