The prospect of a stronger-than-expected rate hike in the United States led the Paris Stock Exchange to experience a difficult session on Friday 14 January. The CAC 40 index ended below 7,150 points, down 0.81% or 58.14 points, in a very painful session for EDF which fell by 14.59%. Since the start of the week, the Parisian rating has lost 1.06%. The market is weighed down by a “renewed tension on just about all fronts, starting with that of interest rates and the American Federal Reserve which is chasing after inflation”, Lionel Melka, director of research at Homa, told AFP. Capital.

In terms of economic statistics, the session was disappointing. Retail sales in the United States fell sharply in December compared to November, when they were expected to be stable. US consumer confidence deteriorated slightly in January, dampened by the spread of the Omicron variant of Covid-19 and inflation concerns. Added to this is “an earnings season that is not starting very well” with those of American banks which have “a worrying side” as investors seek to assess the impact of inflation on corporate margins, continues the ‘expert.

In addition, “the cyberattack in Ukraine rekindles geopolitical tensions”, according to him, while several Ukrainian ministries have been the target of a large computer hack. The authorities assured that they had not found any significant damage after this attack of unknown origin which occurs in the midst of renewed tensions with Russia. On the stock side, the prospect of a faster-than-expected rise in rates in the United States to counter inflation is penalizing the technology sector and growth stocks such as luxury. Investors have integrated that a first monetary tightening will take place in March in the United States.

L’Oréal, Hermès, Kering and LVMH down

The statements of the future vice-president of the American central bank (Fed), Lael Brainard, made them take the measure of the institution’s determination to fight against inflation on Thursday. The rise in prices should slow in the United States in 2022, after having reached its highest level since 1982 last year, to fall back to around 2.5%, however, indicated Friday John Williams, president of the Fed of New York. York.

It was mainly the so-called discounted stocks that rose: Thales (+2.44%), Sanofi (+1.91%) or even 0range (+0.86%). On the other hand, growth stocks such as L’Oréal (-2.42%), Hermès (-2.29%), Kering (-2.97%), LVMH (62.1%) fell in tandem with the technology sector which includes Worldline (-3.95%) and Teleperformance (-1.83%).

EDF in difficulty

The title tumbled 14.59% to 8.84 euros while the group will have to sell more nuclear electricity at low prices to its competitors, put to contribution by the government to contain the rise in electricity prices at 4% this year. EDF also said it has extended the shutdown of some of its nuclear reactors, where corrosion problems have been identified, and in some cases the shutdown will last until the end of the year.


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