(CercleFinance.com) – The Paris Stock Exchange registered a fifth consecutive session of decline on Wednesday in the wake of Wall Street and Asian markets, with concerns about the health of the economy and the evolution of monetary policy still favoring the risk aversion. The CAC40 index fell 1.2% to 5,682 points.
Concerns about monetary tightening implemented by major central banks, rising real rates and slowing growth continue to fuel market jitters.
After spending most of yesterday in positive territory, the CAC had finally broken down in the closing minutes of trading, going from a 0.7% gain around 5pm to a 0.3% drop in the final bell, at 5753 points.
According to technical analysts, the Parisian index is moving too close to its main support at 5750 points not to worry and hide a continuation of the downward movement.
‘Graphically, the CAC40 index should quickly break out of the 5750/5780 zone to feed and give hope of a first technical rebound’, Kiplink chartists believe.
‘Developments at these current levels are too fragile to be projected as a short-term positive trend. In the absence of something better, safeguarding this annual drop is already a first relief,’ they add.
After an encouraging start to the session, the New York Stock Exchange lined up yesterday following comments from several Fed members suggesting continued monetary tightening.
The Dow Jones lost 0.4%, the S&P 500 lost 0.2% and the Nasdaq Composite saved the day by rising 0.2%.
In Tokyo, the Nikkei fell more than 2% at the end of the session as investors shun stocks amid threats surrounding growth.
Hong Kong’s Hang Seng Index returned almost 2.5%.
This new day promises to be relatively poor in statistics, but many economic indicators are expected by the end of the week, including crucial figures for inflation in Europe and the United States.
Risk aversion continues to benefit the dollar, whose index measures its variations against a basket of reference currencies, and sets annual records with a gain that already exceeds 15% this year.
The euro fell below 0.96 to 0.9560 against the dollar.
The 10-year Treasury bond yield hit a high of 0.96%, while the oil market pulled back on concerns about weakening demand and a stronger dollar.
Brent crude lost 1.7% to $84.8 a barrel and US light crude lost 1.6% to $77.2.
On the equity side, Saint-Gobain and solar manufacturer Megasol, a European leader in building-integrated solar modules (BIPV), announce the conclusion of a strategic partnership.
As part of this partnership, Saint-Gobain has acquired a minority stake in Megasol’s business dedicated to the development and production of BIPV modules at its Deitingen site in Switzerland.
Pernod Ricard announces the creation of a new business entity. As of November 2, 2022, The Whiskey Exchange, Drinks & Co and Bodeboca will be united in this new business unit. This new entity will report to Alexandre Ricard and Nicolas Oudinot as CEOs.
Nexity today organizes an investor day to present its strategy as a global real estate operator in the period 2022-2026. The Group confirms its ‘guidance’ for the year 2022. It points to a market share of 14% in the residential real estate sector in an expected market of 130,000 units, more than 4,600 million euros in turnover and a current operating margin of around 8%.
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