The star CAC 40 index crumbled by 0.31% to 7,316.76 points around 10:25 a.m., the day after a drop of 0.46%.
Since the start of the year, however, the Parisian rating has gained more than 13%.
US central bank chief Jerome Powell sent markets tumbling on Tuesday saying he would continue to fight inflation, standing ready to pick up the pace of Fed rate hikes again and raise them further. provided that.
“It has been some time since the speeches of (Jerome) Powell, the chairman of the Fed, had not had an immediate negative effect on the markets, affecting in particular risk taking”, observes Sebastian Paris Horvitz at LBPAM .
"J. Powell's speech seems to have consolidated the idea that monetary policy will remain restrictive beyond 2023," he continues.
This is reflected in the bond market, where the US two-year debt rate was at its highest since 2007, above the 5% mark.
The Fed had slowed its rate hikes in early February, opting for a 25 basis point hike, but this time investors are now mostly expecting a 50 basis point rate hike at the next meeting of the Fed's Monetary Policy Committee. the Fed in two weeks.
The Fed has been raising its rates for a year to slow down the economy by raising the cost of credit, but despite all its efforts, consumption has remained solid, inflation even started to rise again in January and the job market remains tense.
During the session, investors will again listen to Mr. Powell who will speak this time before the Financial Services Committee of the House of Representatives.
They are also awaiting figures on American employment, the publication of which is scheduled for the day.
Thales shares fell 2.56% to 129.25 euros.
However, the group recorded record order intake in 2022, up 18% to 23.6 billion euros.
The Casino title fell by 6.83% to 8.87 euros.
The group announced on Tuesday the study of a new project to sell part of its stake in the Brazilian Assai, "in order to accelerate its deleveraging".
© 2023 AFP