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Cac 40: While the automobile industry is falling on the stock market, the CAC 40 is falling sharply

(BFM Bourse) – The Parisian index lost ground quite clearly this Monday, after having made significant gains last week. Stellantis collapses after large-scale profit warning.

The week is starting off on the wrong foot for the Stock Exchange. The CAC 40 dropped 1.7% at midday this Monday, to 7660.87 points, after recovering 3.9% last week.

The Paris Stock Exchange is undergoing profit-taking as investors await speeches this Monday from the presidents of the European Central Bank (ECB) and the American Federal Reserve (Fed), Christine Lagarde and Jerome Powell, later in the day. The big meeting of the week will remain the American employment report for the month of September, which will be published on Friday.

A nice polarization was observed on the Asian markets this Monday. Chinese stock markets soared. The CSI 300, an index which brings together the largest capitalizations of the Shanghai and Shenzhen stock exchanges, jumped 8.5%, electrified by the announcement of new measures to revive real estate in China.

Conversely, the Nikkei 225, the major index of the Tokyo Stock Exchange, lost 4.8%, due to the surge in the yen and concerns about the economic policy of the future Prime Minister, Shigeru Ishiba. The latter is seen as favorable to the independence of the Bank of Japan and therefore indirectly to increases in key rates and a rise in the yen.

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Stellantis collapses

But the big highlight of the day in Europe remains the avalanche of warnings on results from the automobile sector. Three manufacturers lowered their outlook Friday evening or Monday morning: Aston Martin (-22% in London), Volkswagen (-5% in Frankfurt) and Stellantis.

The group led by Carlos Tavares fell 14.3% on the Paris Stock Exchange, after having slashed its forecasts for 2024, which pushed Oddo BHF to lower its opinion on the value from “outperformance” to “neutral”. Moreover, the CAC 40 and the FTSE Mib (Milan), the two European indices in which Stellantis appears, clearly underperform other places in the Old Continent.

Forvia, of which Stellantis is one of the largest clients, also plunged, with a drop of 10.7%. Renault, in the wake of Stellantis, lost 6.25%.

On other markets, the euro gained 0.2% against the dollar to 1.1193 dollars. Oil is sluggish. The December contract on North Sea Brent lost 0.06% to $71.50 per barrel while that of November on WTI listed in New York lost 0.2% to $68 per barrel.

Julien Marion – ©2024 BFM Bourse

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