Paris (AFP)
The Paris Bourse fell 2.01% on Thursday, raising concerns about the slowdown in monetary support from the US Federal Reserve and the rebound of the Covid-19 pandemic in some countries.
The flagship CAC 40 index lost 130.99 points to 6,396.73 points, in a very strong trading volume of nearly 5 billion euros.
On Wednesday, it finished up 0.31%.
"We had the last few sessions that were a little too quiet, with low volatility and low volumes. There, there was the Federal Reserve report and we also have other concerns that are there" , notes Andrea Tuéni, analyst at Saxo Bank.
Among these, he cites doubts about the recovery in China after various indicators and the rebound of the Covid-19 epidemic, under the effect of the Delta variant, which could derail the recovery by pushing for new restrictions.
In France, the government intends to take measures next week to avoid "a rapid fourth wave".
"The decline of the day is a little more brutal than what we have seen lately but the market has shown that it knows how to be resilient. We will have to see tomorrow (Friday) if we end the week on a negative note or whether we will have stabilization before moving forward, "said Mr. Tuéni.
After opening lower, the Parisian market increased its losses over the day, as investors digested the minutes of the last meeting of the US central bank.
As expected, it reports discussions concerning a change of course for the institution in its monetary support policy, with the need to think of a timetable to reduce purchases of treasury bills and other assets that support the recovery.
"Most stock market operators are preparing for a much less clear environment, and potentially the start of a new market cycle" with the end of the abundance of liquidity, explains Pierre Veyret, analyst for ActivTrades.
The Paris Bourse, however, limited its losses a little at the end of the session, after losing up to more than 2.7%.
Virtually all of the CAC 40 stocks ended lower Thursday in Paris.
only the engine and aeronautical equipment supplier Safran (+ 1.07% to 117.20 euros) and the software giant Dassault Systèmes (+ 0.08% to 42.58 euros) ended up in the green.
Luxury overdue
Weighted down by concerns about the strength of the Chinese recovery, the luxury groups Kering (-3.37% to 712.90 euros), LVMH (-3.21% to 639.20 euros) and Hermès (-2.67 % to 1,204.50 euros) suffered particularly.
© 2021 AFP