Paris (AFP)

The Paris Bourse ended sharply down (-1.43%) Wednesday, ending in the red for the third consecutive session, investors being nervous before the publication of the latest Fed report.

The CAC 40 index lost 91.12 points to 6,262.55 points, in a market environment focused on the future trajectory of inflation.

The markets are "on very high levels with a caution that sets in" because investors "come to protect themselves" in periods when "things can happen" like this Wednesday evening with the publication of the minutes of the Federal Reserve American (Fed), summarizes with AFP Andrea Tuéni, analyst at Saxo Bank.

The minutes of the last monetary meeting of the American Central Bank will indeed be the center of attention at 8:00 p.m., while the speeches of some of its members seem to be less categorical in recent days on the temporary side of the 'inflation.

"Today, we know that there are inflationary pressures, the question is whether these pressures are transitory or whether it is long-term inflation that is setting in", according to Mr. Tuéni.

Investors fear in the short term that the Fed will readjust its monetary support on which the stock indexes have been based to rise for almost a year.

For now, they anticipate a slowdown in asset purchases for the end of 2021-beginning of 2022.

These concerns are reinforced by an acceleration in price increases (+ 1.5% in April over one year) in the United Kingdom, a high since March 2020.

JCDecaux at the top of the SBF 120

The title of the French giant of the advertising display JCDecaux, one of the few in the green, finished at the top of the SBF 120 (+ 3.45% to 23.96 euros), reinforced by the rebound of the activity that the group expects in the second quarter.

The restrictions linked to the Covid-19 pandemic continued to weigh on the group's activity in the first quarter, however, emerged above expectations.

Raw materials penalized

Securities linked to commodities suffered in the wake of inflationary fears and the fall in crude prices: Vallourec fell 6.31% to 28.80 euros, ArcelorMittal 4.99% to 25.41 euros and Eramet de 4.45% to 60.10 euros.

Total for its part lost 3.30% to 38.39 euros.

Danone resists

Danone continued to benefit (+ 0.48% to 58.33 euros) from the announcement of the arrival at its head of the French Antoine de Saint-Affrique after the governance crisis which had resulted in the ousting of the 'ex-CEO Emmanuel Faber.

© 2021 AFP