The Paris Stock Exchange ended the session on Tuesday with a drop of 0.54%, overtaken by the fears of investors on Wall Street, in the midst of the corporate earnings season.
The star CAC 40 index lost 34.81 points to 6,414.57 points. The day before, it had fallen by 2.01%.
The Parisian rating had however opened higher, and had continued to progress towards 5,535 points (+ 1.3%) at the start of the afternoon. But the sluggishness of the American markets completely reversed the trend.
“We are awaiting the results of index heavyweights, such as Microsoft and Alphabet, so investors are a little on the edge,” explains Guillaume Chaloin, director of equity management at Meeschaert Amilton AM.
The big names in tech are expected at the turn, in a context of high inflation and rising interest rates, which weigh more particularly on this sector and its high valuations on the markets.
After a series of quarters of flamboyant results, “the good surprises are greeted modestly, but the bad surprises severely”, like that of Netflix (-35%) last week, continues Mr. Chaloin.
Especially since, moreover, “we accumulate the negative points” on the indices, believes the manager. Inflation is at the peak in Western countries, and central banks seem ready to slow down the economy to combat it. In China, the sanitary confinements against Covid-19 are also weakening production chains and global growth.
“It may be a peak of pessimism” while waiting for better signals on some of these fronts, continues the manager.
On the bond market, the French rate at maturity 10 years remained stable at 1.31%, when the rates in the United States fell more frankly, the 10 years moving away from the level of 3% (2.74%).
Internal report at Orpea
The manager of private nursing homes Orpea, in turmoil since the release of the investigative book “Les Fossoyeurs”, published on Tuesday the first conclusions of an external audit which confirms dysfunctions within the group, in particular concerning its use of public funds. . The title fell 8.27% to 31.60 euros, down 64.13% since January 1 and nearly 20% in April.
Renault (-4.30% to 22.12 euros), Stellantis (-3.47% to 12.39 euros), Michelin (-2.05% to 114.55 euros), also suffered.
Euronext CAC40