The flagship CAC 40 index dropped 29.08 points to 7,184.82 points. On Thursday, it had fallen sharply by 1.59%. Over the week, the Parisian rating shows a sharp decline of 2.63%.
"The appointment of the week was the US central bank," Wednesday evening and "this is what still dominates the markets today," said Andrea Tueni, market analyst at Saxo Bank.
The Fed's monetary policy committee, the FOMC, has announced that it will keep rates at their current level, in the range of 5.25-5.50%, but anticipates a further hike by the end of the year, and rates slightly above 5.0% in 2024, a higher level than expected.
This Fed stance more severe than anticipated by the markets "has caused bond yields to react: when monetary policy is not very accommodative, it lowers bond prices, which has the effect of raising yields," says Andrea Tueni.
On the bond market, the interest rate of the French State to 10 years, the maturity that references, moved at 3.29% around 18:30, the highest since January 2012.
Such high rates "have an impact on growth stocks, which are sensitive to rates, such as the technology sector," Tueni said.
In Paris, the IT group Atos has lost 2.27% since Monday, Capgemini dropped 1.97% on the week, Worldline was cut by 2.03% and Dassault Systèmes dropped 0.93%.
Eramet and Suez in Dunkirk
The mining group Eramet (+1.99% to 71.65 euros) and the waste treatment and water management group Suez will set up in Dunkirk (Nord) their future industrial complex for recycling electric vehicle batteries which should start in 2027, the two groups announced on Friday.
Capital increase for TechnipEnergies
More than 4,500 employees of the engineering and services group Technip Energies (-0.34% to 23.28 euros) have subscribed to a capital increase reserved for them at a preferential rate, representing nearly 1% of the company's shares, management said on Friday.
Bad week for Societe Generale
Over the week, Societe Generale shares fell 12.66% to 23.12 euros, not recovering from the fall in the share that followed the presentation of the strategic plan of its new CEO, Slawomir Krupa, and which left investors hungry for a lack of ambition. The stock erases all of its 2023 gains.
© 2023 AFP