New drop of more than 1% for the Cac 40, now below 5,900 points, Market news

New drop of more than 1% for the Cac 40, now below 5,900 points, Market news

The Paris Stock Exchange continues to decline, confirming that the jump on Wednesday, before the monetary decision of the Fed, was just a respite. The US central bank has since announced a third consecutive hike of 75 basis points in its key rates, putting its counterparts around the world under pressure. The continued contraction of activity in the eurozoneboth in services and in the manufacturing industry, is also confirming fears of recession on the Old Continent.

Mid-session, the Bedroom 40 fell by 1.25% to 5,844.29 points and returned to the “bear market” zone after a fall of more than 20% compared to its record of January 5. It thus joins the New York S&P 500, for which Goldman Sachs lowered its target to 3,600 points at the end of the year, against 4,300 previously. The contracts future on American indices yield between 0.8% and 1%.

The PMI indices September preliminary data published by S&P Global for the euro zone fell by 1.6 points respectively to 48.5 in industry and by 0.9 point to 48.9 in services, marking lows of 27 and 19 months. The 50-point threshold marks the boundary between growth and contraction in activity. ” A recession in the euro zone is looming, as companies in the region have reported a deterioration in the economy as well as rising inflationary pressures, linked to soaring energy prices. writes Chris Williamson, chief economist at S&P Global. And to add that ” monetary policy makers face an increasingly difficult challenge: controlling inflation while avoiding a hard landing in the economy “.

The Fed imposes its rhythm

For those who still doubt it, the Federal Reserve sent a message that could not be clearer. The Fed is willing to tolerate a recession as the price to pay for regaining control of inflation. ” The problem with this approach is that it has the undesirable side effect of forcing other central banks to try to keep pace in order to contain the inflationary shock caused by the surge in the dollar against their own currencys,” warns Michael Hewson, chief market analyst at CMC Markets.

The Bank of England, the Bank of Norway and the Swiss National Bank therefore raised their interest rates yesterday, while the Bank of Japan (BoJ) has passed. On the other hand, it intervened on the foreign exchange market for the first time since 1998, to stop the fall of the yen. The latter recovered somewhat against the dollar. But this intervention does not address the root cause of the Japanese currency’s weakness: the gaping gap between the BoJ’s ultra-accommodative policy and that of the other central banks.

Airbus confirms, M6 coveted by MFE

TotalEnergies fell by 2.9%, the movement of monetary tightening around the world reinforcing fears about demand.

Banks are dragged down by Credit Suisse, which hit an all-time low in Zurich, after testing investors for a capital increase, according to sources cited by Reuters. In Paris, Societe Generale drop 2% and BNP Paribas 1.6%.

Biggest increase in the Cac 40, Airbus increased by 2%. As part of its investor day, the aircraft manufacturer confirmed its objective of delivering around 700 aircraft this year despite the difficulties encountered in its supply chain. He also says he is committed to strengthening shareholder returns.

M6 jumped 8.6% following an article by La Stampa according to which the media group MediaforEurope, of Silvio Berlusconi, will present a non-binding offer in cash for the 48.3% of the capital of the French channel offered for sale by Bertelsmann.

Nexity gives up 4.6%. Oddo BHF downgraded the title of the real estate developer from “neutral” to “underperformance”.

Neoen fall of 7.9%, weighed down by a note from Citi, which went from “neutral” to “sell” on the title. The same intermediary started monitoring Veolia Environment (-2.3%) to “neutral” to target 21 euros.

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