The Paris Stock Exchange skates and slides by 0.33%

The Paris Bourse fell 0.33% on Thursday, remaining at half mast after two sessions of sharp decline, the deadlock in negotiations on the American debt and the macroeconomic context are weighing on investor morale.

The star CAC 40 index fell 24.19 points to 7,229.27 points. The day before, it had lost 1.70%, its worst session since March 15, in full panic around the American banking sector.

This follows a drop of 1.33% on Tuesday, where profit-taking on luxury goods accentuated the decline in the Parisian rating. The CAC 40 is at its lowest since the end of March as it approached its all-time high on Friday. In the meantime, it has lost more than 4%.

“The market is still very focused on US debt,” summarizes Andrea Tuéni, an analyst at Saxo Bank.

A week before a possible default in payment by the United States, no major progress has yet been made between the White House and the Republican opposition in Congress on the issue of raising the debt ceiling of the United States.

“The negotiations are not progressing so quickly, according to the experience of recent years it is often settled at the last minute”, warns Andrea Tuéni.

On Wednesday evening, the financial rating agency Fitch placed the rating of the United States on negative watch, which means that it plans to lower it.

The rise in interest rates on the bond market in the face of investors who “increasingly anticipate a less accommodating monetary policy” in the United States may also weigh on the equity markets, underlines Mr. Tuéni.

In the United States, the statistical data remain solid, proof that the American economy refuses to bow down.

In Germany, on the other hand, the economy officially fell into recession with a second quarter decline in gross domestic product (-0.3%). In addition, German consumer sentiment is expected to lose steam in June, according to another indicator released on Thursday.

For France, the business climate deteriorated again in May, for the third consecutive month, due to a deterioration in all commercial sectors of activity, INSEE said on Thursday.

Soitec in the wheel of Nvidia

Semiconductor manufacturer Soitec achieved the best performance of the SBF 120, with a gain of 7.74% to 130.80 euros, in the wake of better-than-expected results from global giant Nvidia thanks to artificial intelligence (AI ).

Nvidia has a “competitive advantage” on AI compared to other companies in the same microchip and semiconductor industry, which explains why not all of its competitors have benefited from the bullish trend, according to Andrea Tuéni.

STMicroelectronics lost 0.33% to 39.17 euros and Teleperformance fell 5.70% to 147.35 euros, at the very bottom of the CAC 40.

AI is creating long-term uncertainties for the call center giant’s business, according to the latest note from Oddo BHF analysts.

Derichebourg rejected

The recycling group Derichebourg was heckled (-7.02% to 4.87 euros) after its half-year results published on Wednesday, with a drop in profitability, mainly due to the drop in turnover of the recycling division and of rising costs.

Pierre and Vacances unwelcome

The Pierre et Vacances-Center Parcs group (-5.33% to 1.67 euros) reduced its losses in the first half of its delayed financial year to 104.4 million euros, against 114.9 million euros in the first half of the previous financial year, and confirms the increase in its financial forecasts for the 2022/2023 financial year.

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