(BFM Bourse) – While it was suffering significantly at mid-session, the Parisian index finally limited its losses, thanks to the clear progression of the American indices. The correction triggered by the Fed may have been exaggerated. Over the week, the CAC 40 dropped 1.8%.
The CAC 40 had an eventful session, at least in terms of variations. While the Parisian index was in a very clear decline mid-session, losing around 1.3%, it finally fell by 0.27% this Friday, December 20, to 7,274.48 points. Over the week as a whole, however, the CAC 40 lost 1.82%.
Today's session was volatile, including on Wall Street. At the close of European markets, the S&P 500 rose 1.3% after opening slightly lower.
This Friday was a so-called “four witches” day during which four types of derivatives expire simultaneously, which can theoretically cause volatility.
Investors may also have judged that the market correction caused by the US Federal Reserve (Fed) was exaggerated.
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A somewhat reassuring PCE index
On Wednesday evening, the American central bank signaled that it could apply the handbrake on key rate cuts next year. The S&P 500 then lost nearly 3% on Wednesday and did not rebound on Thursday (-0.09%).
“We overreacted to what the Fed presented on Wednesday, but that overreaction is not necessarily surprising given that we entered the Fed meeting at or near record highs. “this,” Art Hogan, chief market strategist at B. Riley Wealth, told Bloomberg.
“I don't know why we always have to be reminded that the fact that the Fed isn't cutting rates – or not cutting them as quickly – is actually good news if it's driven by stronger economic data, and it “That's exactly what the Fed is telling us,” he added.
Furthermore, the PCE index, the Fed's preferred gauge for measuring inflation, may have provided some reassurance. In November, this index increased by 0.1% over one month excluding energy and food prices, and by 2.8% over one year, which turned out to be slightly lower than expected.
On the value side, variations were contained on the CAC 40. Vivendi, which will leave the Parisian index on Monday to give way to Bureau Veritas (-2%), gained 2.4% while Thales suffered the most sharp decline with a drop of 1.4%.
Note that in Copenhagen, Novo Nordisk, the largest company listed on the stock exchange in Europe, fell by more than 20% after publishing disappointing clinical trial results for its anti-obesity drug candidate Cagrisema.
On other markets, the euro gained 0.6% against the dollar to 1.0425 dollars. Oil is almost stable. The February contract on North Sea Brent fell 0.1% to $72.81 per barrel while that of the same maturity on WTI listed in New York lost 0.1% to $69.31 per barrel.
Julien Marion – ©2024 BFM Bourse
