The Paris Stock Exchange celebrates then becomes disillusioned after the Fed – 05/05/2022 at 19:01

The control room of Euronext, the company that manages the Paris stock exchange, in La Défense (AFP / ERIC PIERMONT)

The control room of Euronext, the company that manages the Paris stock exchange, in La Défense (AFP / ERIC PIERMONT)

The Paris stock exchange, which opened sharply higher the day after the Fed meeting, finally closed its session on Thursday, overtaken by US markets and the general economic context.

The star CAC 40 index lost 27.28 points to 6,368.40 points. The day before, it had fallen 1.24%.

However, the Paris Stock Exchange had started the day with a gain of 2.40% to 6,549.49 points, the highest for the session. The index fell little by little and came to a halt after the US markets opened.

“Investors were reassured yesterday about the pace” of the US Federal Reserve’s policy rate hike, Pierre Blanchet, chief of economic intelligence at the Amundi Institute, told AFP.

Bank chairman Jerome Powell rejected any 0.75 percentage point rate hike, a prospect that had scared markets for days.

The Fed opted for an increase of half a percentage point at this meeting and is expected to continue that trend at least next month.

This information carried Wall Street on Wednesday and then the European stock market. But US markets went the other way on Thursday, losing more than 3% shortly after the Paris close.

“The general trend is not very good” between the detentions in China and the war in Ukraine, Blanchet recalled.

The sharp rise in inflation, which could exceed 10% in the UK according to the Bank of England, is also changing the configuration of the market, making technology stocks that prefer low interest rates more difficult. †

Treasury yields, which set the trend for the rest of the economy, continued their sharp rise: the French 10-year yield reached 1.57%, while the US yield rose above 3%, to 3.08%.

Finally, the euro also fell more than 1% against the dollar (-1.04% to $1,0512 at around 6:45 PM), benefiting from its safe-haven status and the Fed’s monetary tightening.

Airbus takes off

Airbus shares rose 6.28% to EUR 109.02 after the European aircraft maker more than tripled its quarterly profit over a year to EUR 1.22 billion. Airbus has also shown great ambitions by aiming for monthly production of 75 A320s by 2025, unprecedented for its single-aisle star jets.

The airline Air France-KLM, which divided its loss in the first quarter by three and said it was optimistic for the summer, also rose 2.05% to 3.99 euros.

Crédit Agricole and Société Générale tossed around

The bank Crédit Agricole fell by 4.01% to 9.98 euros after a net profit of 24.1% in the first quarter.

Societe Generale fell 2.56% to EUR 22.43 after announcing a net profit that rose slightly in the first quarter. Its performance had suffered badly after the outbreak of the war in Ukraine by Russia, where the bank serves but from which it will withdraw.

BNP Paribas, for its part, lost 0.61% to 50.70 euros.

Euronext CAC40