The Paris Stock Exchange at its lowest in nearly a month

2023-05-04T16:44:16.289Z

Highlights: The Paris Stock Exchange ended down 0.85% on Thursday, touching its lowest in a month. The flagship CAC 40 index lost 63.06 points to 7,340.77 points, its lowest level since April 6. In three sessions, it has lost 2.01%. The European Central Bank (ECB) slowed the pace of its rate hikes but will maintain a restrictive monetary policy for as long as necessary to combat inflation still "too high" The atmosphere of the markets is weighed down by the crisis of the US regional banks, the increase in volatility or the negotiations that skate on the ceiling of the American debt.

The Paris Stock Exchange ended down 0.85% on Thursday, touching its lowest in a month, after a decision by the European Central Bank without surprise and disappointing corporate results.

The flagship CAC 40 index lost 63.06 points to 7,340.77 points, its lowest level since April 6. In three sessions, it has lost 2.01%.

The European Central Bank (ECB) on Thursday slowed the pace of its rate hikes but will maintain a restrictive monetary policy for as long as necessary to combat inflation still "too high".

The ECB "still talks about inflation, but the message on credit conditions has taken the lead", and the tightening observed in the first quarter "explains the transition to an increase of 0.25 percentage points", instead of 0.50 until the beginning of the year, explains Nicolas Leprince, manager of Edmond de Rothschild AM.

Not what, among the announcements of the ECB, keep the bullish course that had allowed the CAC 40 to approach 7,600 points in April.

If, "from a micro point of view, corporate results are good" on the whole so far, the atmosphere of the markets is weighed down by the crisis of the US regional banks, the increase in volatility or the negotiations that skate on the ceiling of the american debt, explains Mr. Leprince.

After the acquisition of First Republic, another regional bank, PacWest, is battered by the markets, and still loses 50% of its value on Wall Street at the time of the Paris close.

Economic activity has also shown signs of slowing down in recent months. In France, the dynamism of the private sector in France was less strong than initially estimated in April, as the acceleration of the increase in services was overshadowed by the largest decline in nearly 3 years in the manufacturing sector, reported Thursday the agency S&P.

Results not up to par

Among the results of companies on the CAC 40, ArcelorMittal (-5.44% to 24.26 euros), Capgemini (-2.50% to 162.10 euros), Veolia (-2.62% to 27.87 euros), Legrand (-1.70% to 84.34 euros) also suffered.

The sales of the distributor Casino fell by 2.3% in France in the first quarter of 2023, a poor performance in a context of inflation that inflates the sales of the large distribution, and the group announced Thursday that it had significantly lowered its prices to attract customers.

Its share lost 5.74% to 7.89 euros, after falling more than 10% in early trade. Its parent company Rallye lost 3.91% to 1.33 euros.

The Paris Stock Exchange at its lowest in nearly a month

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