(BFM Bourse) – The Parisian index remains locked in a downward dynamic, weakened by political risk in France, and Donald Trump's latest announcements relating to an increase in customs duties. The CAC 40 lost more than 1% mid-session.
The Paris Stock Exchange remains on the ropes. The CAC 40 was down sharply at mid-session this Wednesday, losing 1.3% to 7,103.27 points, after having already returned 0.87% the day before.
The Parisian index, already significantly weakened by Donald Trump's threats to apply high customs duties against China, Mexico and Canada, must also absorb the political risk in France.
Investors are moving away from French assets, fearing government censorship on the 2025 Budget vote.
The bond market is also the most telling barometer of market fears about the political situation in France. The gap between French and German borrowing rates with a 10-year maturity is at the highest level since 2012, at 85.7 basis points, after reaching a peak earlier in the session at 90.3 basis points, a record since July 2012, according to Reuters.
The banking sector is at the forefront of these fears: Axa drops more than 5%, Société Générale returns 4.3%, Crédit Agricole 2.6% and BNP Paribas 2.5%.
In this very turbulent context, the S&P rating agency will deliver its verdict on its rating on French debt on Friday.
A copious statistical menu
On Wall Street, the mood is rather festive despite Donald Trump's announcements relating to customs duties. The S&P 500 recorded a fifty-second record of the year, with an increase of 0.57% when the Nasdaq gained 0.63% and the Dow Jones 0.28%. Operators have taken note of the report from the American Central Bank (Fed), which recalls that it is in favor of a gradual reduction in rates.
On the statistical front, the menu promises to be copious before the traditional closing of Wall Street for Thanksgiving on Thursday and a shortened session on Friday. On the agenda for this Wednesday in the United States, the PCE price index for the month of October, the Fed's preferred inflation gauge, weekly requests for unemployment benefits one day in advance, the second GDP estimate for the third quarter and durable goods orders for the month of October, in preliminary data.
On the value side, Teleperformance returned more than 3%, the market has difficulty welcoming the acquisition of the American company ZP Better Together, specialist in linguistic solutions and technological platforms intended for deaf and hard of hearing people.
Aramis grew by 4.9%, the specialist in the sale of used and reconditioned vehicles announced that it had returned to profit in 2023-2024 and presented a strategic plan for 2027.
On the foreign exchange market, the euro gained 0.3% against the greenback at 1.0552 dollars. On the oil side, the January contract on Brent from the North Sea gained 0.5% to 72.68 dollars per barrel while that of the same maturity on WTI listed in New York gained 0.5% to 69.10 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
