The Paris Stock Exchange retreats, tense situation on bond rates and gas

The Paris Stock Exchange ended Tuesday at a new closing low since February 2021, weighed down by the news around gas in Europe but also the trajectory of bond rates which continue to cross peaks.

After an opening up 0.70% and a large part of the session spent in the green, the Parisian rating faltered at the end of the session, like the day before. The CAC 40 index lost 0.27% to 5,753.82 points.

All the stock markets have chained numerous negative sessions since mid-September.

“There is a real triptych inflation, recession, central banks which dominates the news on the markets” and “investors are wondering to what extent the economy will be able to support all this”, deciphers Andrea Tuéni, analyst of Saxo Bank, interviewed by AFP.

Central banks are determined to tackle persistent inflation by raising policy rates and maintaining tight financial conditions next year, even if economic growth is set to suffer.

As a result, bond yields in the sovereign debt market continue to rise. The ten-year French rate, the benchmark term, rose inexorably to 2.85%, a level that has not been reached for 10 years. At the start of the year, it was still hovering around 0.2%.

Investors, who fear that the global economy is entering a recession, will be able to measure as early as next month the impact of rising prices and rapid tightening of monetary policies on corporate profits.

Many pundits are advocating patience before seeing quotes return to sustained levels, still expecting volatile sessions as things stand.

“The situation remains tense” on the markets and the news around gas has contributed to lowering the European indices, observes the Saxo Bank analyst.

The unexplained leaks discovered on the Nord Stream gas pipelines in the Baltic Sea “leave the markets a bit dubious”, the energy situation being an “extremely sensitive subject” at present.

Technicolor sees all the colors

Technicolor studios, specializing in visual effects for cinema, video games, animation and advertising, were heckled by the markets on Tuesday after their listing on the Paris Stock Exchange, supposed to help deleverage the ex-Thomson Multimedia.

The securities, introduced on Tuesday at nearly 2 euros per share for a valuation of more than one billion euros for the entire group, ended on a decline of 4.53% to 1.86 euros after losing more than 26% in session.

TotalEnergies strongest rise in the CAC 40

The action of the oil giant gained 1.74% to 47.85 euros.

The CEO of TotalEnergies Patrick Pouyanné announced Tuesday that his group would invest 1 billion euros to improve the energy performance of its companies, at a time when an effort of sobriety is required of the economic world and consumers. In addition, the employees of the group in France started Tuesday a strike of at least three days to demand in particular an increase in their wages.

Kering penalized by a note

The title of the luxury giant lost 3.10% to 458.40 euros, penalized by the degradation of a recommendation from Barclays on the title from “overweight” to “weight”.


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