The Paris Stock Exchange closed an anemic session this Monday, rising 0.25%, having resisted the upward momentum of recent weeks, with the fall in oil prices, the economic indicators published this Monday in China and then in USA. The CAC 40 star index rose 16.09 points to 6,569.95 points. It rose 1.26% in the whole of last week, the sixth consecutive weekly increase.
On this holiday in France, in the middle of August, investors were once again far from the trading floors, with a traded volume of just 1,780 million euros for the session as a whole, twice as much as usual. The Parisian rating has fluctuated all day around the balance.
The renewed enthusiasm of market players, shaken during the first half of the year by the war in Ukraine, inflation and the specter of recession in several major economic zones, was somewhat dampened for most of the session by indicators from China and the United States.
In China, retail sales and industrial production slowed in July, disappointing analyst forecasts. In response, the Chinese central bank cut several of its key rates, hoping to support an economy tested by anti-Covid restrictions and a housing crisis.
Fear of a global recession
In the second part of the session, investors saw the index of manufacturing activity in the New York area register its biggest drop since April 2020. The companies surveyed “do not expect a great improvement in the economic economy during the next six months” , also stressed the Fed, which publishes the indicator.
These figures “highlight the difficulties manufacturers are facing today, while slowing domestic demand, high inflation and rising interest rates limit the sector’s progress,” Oren Klachkin, an economist at Oxford Economics, said in a note. .
Therefore, fears of a global recession regained strength, which was seen in the bond market in particular, with interest rates on government bonds falling to 1.45% for the 10-year French maturity. compared to 1.54% on Friday.
The oil market also tumbled, with prices falling more than 5% during the session. Shortly before 6 p.m., Brent fell 3.76% to $94.43 and WTI fell 3.88% to $88.49. Like commodity prices, energy stocks suffered on the Paris Stock Exchange. TotalEnergies fell 2.35% to 50.71 euros, Eramet 2.91% to 100.00 euros, ArcelorMittal 1.31% to 24.12 euros.
Source: BFM TV
