(BFM Bourse) – The Paris Stock Exchange closed sharply lower on Tuesday, in the wake of the decline in American indices after the ISM manufacturing index disappointed expectations.
The second part of the session was eventful for the Paris Stock Exchange. The CAC 40 finally fell by 0.93% on Tuesday, to 7,575.10 points at the close.
The Paris market was clearly dragged into the decline on Wall Street, which reopened on Tuesday after a public holiday the day before. The American indices suffered, with the S&P falling by 1.3% shortly before the European close, while the Nasdaq lost more than 2% (2.12%).
The downward movement gained momentum after the publication of the ISM manufacturing index in the United States for August, which came in at 47.2, compared to a Reuters consensus of 47.5, and a previous index of 46.8 in July.
“Overall, the modest increase in the headline index is disappointing compared with our expectations for a larger increase, which was based on temporary disruptions to manufacturing in July that dissipated last month,” Capital Economics said.
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“A significant concern is highlighted by the continued decline in the new orders component, which fell from 47.4 to 44.6, marking the lowest level since mid-2023. This trend in new orders suggests a further weakening in next month’s ISM figures,” notes Florent Ielpo, head of macroeconomic research at Lombard Odier.
French tech suffered in the wake of the Nasdaq. OVHcloud lost more than 10%, STMicroelectronics dropped more than 4.5%.
Totalenergies lost more than 3%, weighed down by the fall in oil prices, which intensified after the ISM manufacturing index.
The November contract on North Sea Brent fell 4.1% to $74.31 a barrel, while the October contract on WTI listed in New York fell 3.6% to $70.87 a barrel.
Cyclical stocks suffered more widely, notably car manufacturers Stellantis (-2.7%) and Renault (-2.1%).
On the upside, FDJ gained 2.8%, driven by an upgrade of its buy recommendation from Deutsche Bank.
Nexans gained 4.5%, driven by positive press reports regarding a major contract won by the group.
On the currencies, the euro lost 0.28% against the dollar at 1.1042 dollars.
Julien Marion – ©2024 BFM Bourse
