2023-08-17 08:34:49
The Paris Stock Exchange was down Thursday, the day after the minutes of the last meeting of the American Federal Reserve (Fed) which suggests potential future rate hikes, which tensed the bond market.
The main CAC 40 index fell 0.33% around 10:20 GMT, to 7,236.05 points.
Investors were put off by the firmer-than-expected tone of the members of the Fed’s monetary committee regarding the continuation of its monetary tightening policy.
According to Wednesday’s minutes of the Fed’s monetary policy committee meeting in July, where it decided on another rate hike, “most participants recognized that there were still risks” of persistence. inflation that may “require further tightening of monetary policy”.
However, “the markets had become accustomed to the idea that the rate hike in July was probably the last and the minutes call this assumption into question”, underlines Michael Hewson, analyst of CMC Markets.
Since that publication, the market has estimated that there is “less than a 15% chance that the Fed will raise its rates in September, but the forecasts of a potential hike at the November meeting are emerging”, said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
In the bond market, yields have risen sharply, which is weighing on the technology sector.
The US 10-year rose briefly to its highest since October 2022 (4.33%) and stood at 4.28% around 07:50 GMT. The French at the same date was at 3.24% against 3.19% at the close of Wednesday, flirting with its highest level since 2011.
The “tech” in reply
Shares of technology groups, often seen as riskier and sensitive to rising bond rates, were down.
Worldline fell by 2.92% to 30.95 euros and Capgemini by 0.68% to 159.85 euros. Atos lost 0.40% to 6.55 euros, Dassault Systemes 1.70% to 36.34 euros and STMicroelectronics dropped 1.15% to 42.62 euros.
Valneva gets financed
The Franco-Austrian group specializing in vaccines (+0.90% to 6.04 euros) announced Thursday that it had reached an agreement with its creditors providing for granting it up to 100 million additional dollars in order to prepare the commercial launch of his chikungunya vaccine.
“This additional funding will be invested in R&D and in preparation for the potential commercial launch of Valneva’s chikungunya vaccine candidate,” the group said.
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