The Paris Stock Exchange had an unfortunate session on Friday (-0.81%) to the top of the US releases on the back of the possibility of a stronger-than-expected interest rate hike in the US.
The CAC 40 finished below 7,150 points, down 0.81% or 58.14 points, in a very painful session for the EDF, which fell by 14.59%. Since the beginning of the week, the Paris rating has lost 1.06%.
said Lionel Milka, director of research at Homa. Capital said the market is affected by “renewed tension on all fronts, starting with interest rates and the US Federal Reserve chasing inflation”.
In terms of economic statistics, the cycle has been disappointing.
US retail sales fell sharply in December compared to November, when they were expected to be stable.
US consumer confidence deteriorated slightly in January, weighed down by the spread of the Omicron variant of Covid-19 and inflation concerns.
Added to this is a “earnings season that has not started well” with US banks having a “worrying side” as investors seek to assess the impact of inflation on corporate margins, the expert continues.
On the equity side, the prospect of a faster-than-expected price hike in the US to counter inflation is penalizing the technology sector and growth stocks such as luxury goods.
Investors have concluded that the first monetary tightening will occur in March in the US.
The remarks by Fed Vice President Lyle Brainard prompted them to take a measure of the institution’s determination to fight inflation on Thursday.
The price hike in the United States should slow in 2022, after hitting its highest level since 1982 last year, to fall to about 2.5%, however, John Williams indicated on Friday, the president of the Federal Reserve Bank of New York.
Alleged growth stocks like L’Oréal (-2.42%), Hermès (-2.29%), Kering (-2.97%), LVMH (-62.1%) declined along with the technology sector including Worldline (-3.95%) and Performance Teleperformance (-1.83%).
EDF a dégringolé de 14,59% à 8,84 euros alors que le groupe va devoir vendre plus d’électricité nucléaire à bas prix à ses concurrents, mis à contribution par le gouvernement pour contenir la hausse des àlectricité de l’é 4 % this year. The EDF also said it has extended shutdowns on some of its nuclear reactors, where corrosion problems have been identified, and in some cases the shutdown will continue until the end of the year.