The Paris Stock Exchange snapped a six-week streak of gains, ending down 0.94% on Friday as shifting investor expectations about the central bank’s future policies led to some profit-taking.
The CAC 40 index fell 61.57 points to 6,495.83 points. It ended the week down 0.89% and taking its losses since January 1st by 9.19%.
The Paris rating, which was neutral during the first four sessions of the week, spent the entire day in the red, a trend of inflation in the last hour of trading, marked by the expiration of several options that could generate more volatility.
Thus not equal to the seven weeks of consecutive gains experienced in October and November 2021. Over the past six weeks, which have been marked especially by corporate results, the CAC 40 is up 10.50%.
These are profit-taking, but they remain on the sidelines, according to the nuances Michal Jacobi, head of brokerage in continental Europe for Oddo.
Since mid-June, there has been a violent rally in the indices, which was more than expected when volumes were thin, he explains.
Parmi les raisons de la hausse, les acteurs de march ont eu l’espoir que le ralentissement de l’inflation aux Etats-Unis en juillet et une srie d’indicateurs montrant une croissance ralentie incitenta la Montreal Banque central un pivotine une aire more supple. But several statements by officials in the institution questioned this possibility this week.
The drop in oil prices may have helped as well, but they started to recover at the end of the week.
In other headwinds, bond yields continued to rise due to investors’ expectations of tougher central bank measures, including sharp interest rate increases.
With that, the French 10-year loan rate came to 1.80% versus 1.46% on Monday at close, its highest level in nearly a month.
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Only stocks less related to economic activity, which investors prefer in times of risk aversion, resisted. Air Liquide got 0.06% 136.50 euros, Pernod Ricard 0.33% 195.40 euros, and Orange 0.50% 10.38 euros.
On the contrary, the most frequent stocks fell sharply, such as banks (BNP Paribas -2.79% -47.66 €), or cars (Renault -3.08% -29.31 €).
Big order from SNCF Alstom
SNCF has placed an order from rail manufacturer Alstom for 15 new-generation TGVs, in addition to 100 units already purchased four years ago, to respond to growth in traffic and the launch of overseas trains. In green at the opening, the Alstom title, which was affected by the economic situation of the session, lost 1.79% to €21.90.