The Cac 40 at the lowest of the year, the same as the euro and almost like oil

The Cac 40 at the lowest of the year, the same as the euro and almost like oil

New session of decline on the Paris Stock Exchange, the ninth in ten sessions. the bedroom 40 closed down 0.24%, at 5,769.39 points, after having registered a new low for the year at 5,736 points in session. Last week, the Paris index saw its worst weekly performance since mid-June, entering the bear market zone at the same time.

Elsewhere in Europe, in Italy, where Giorgia Meloni’s post-fascist party came out ahead in general elections this weekend, Milan’s FTSE Mib finished more than 1% after falling 3.4% on Friday. ” In the short term, we believe that the risks of tensions are modest, but could increase in the medium term. The first priority of the government will be to finalize the finance law by 2023. Due to the little time left to complete it, we believe that the center-right government will have to rely on the budget projections that the Draghi government will present at the end of the month. », sums up Ludovico Sapio, from Barclays.

However, on the currency side, the euro fell further against the dollar (to below 0.96 at the day’s low) while the British pound fell to new record lows. The dollar index hit new 20-year highs today. “Such an increase in the dollar [considéré comme une valeur refuge] has historically led to financial or economic crises, Morgan Stanley’s Michael Wilson writes in a note. If there was ever a time to be on the lookout for something to break, this would be it. »he adds.

Wall Street evolves in a disorganized order, weighed down by the strength of the dollar, which threatens to cut the profits of US multinationals. The Dow Jones and S&P 500 fell 0.4% and 0.2% respectively, while the Nasdaq Composite rose 0.3% despite two-year government bond yields rising for the 13th consecutive session. .

The global trend continues to be weakened by the specter of recession and tightening of monetary policies. Christine Lagarde also declared before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels that the ECB should “Continue to raise rates in upcoming meetings to curb demand and hedge against the risk of a persistent rise in inflation expectations. »

Oil prices at their lowest level since January

For its part, the OECD stressed that the combined consequences of inflation, the war in Ukraine and the energy crisis could cause a recession in most developed countries, and particularly in Europe next year. Reflecting these fears, North Sea Brent crude fell below $85 for the first time since January, before returning to around $86.70.

prevents that Total Energies closed with a gain of more than 1%. The French oil company, which had already been chosen this summer by Qatar as the first partner of its North Field East LNG project, has also just been selected as the first international partner of North Field South (NFS), with a capacity of 16 million tons per year. . Under the agreement, TotalEnergies will obtain a 9.375% stake in the NFS project (out of a total of 25% available to international partners) while the national company QatarEnergy will hold the remaining 75%. Note also that JPMorgan has raised its view from “neutral” to “overweight” and is now targeting €62, up from €59 previously.

In addition to the Cac 40, elior fell 25%. Analysts at Stifel, who maintain their “sell” view of the stock, fear the collective catering group may not meet consensus expectations.

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