The CAC 40 index fell 66.89 points to 7.56.99 points around 09:45, the lowest since March 2023, when the banking crisis had sown panic on the markets. On Monday, it had lost 0.83%, weighed down by the luxury sector.

For CMC Market, "the slowdown in the Chinese economy and the threat of a housing crisis, the rapid and continuous rise in yields in the US bond market" are among the main factors having "a negative influence on the equity market".

The risk that inflationary pressures will resume with the rise in oil prices, combined with the gloomy economic data released last week and high interest rates, worries investors who have preferred to offload some of their shares in recent days.

In the bond market, the prospect of higher central bank policy rates for longer is pushing sovereign yields to new highs.

The interest rate on the ten-year French government bond has reached a peak since January 2012 at 3.37%, while the German and American equivalents are also trading at multi-year highs.

In China, the real estate crisis is back at the center of concerns after Evergrande announced on Monday a blockage in its restructuring plan to ensure its survival.

He then indicated that one of his entities has not repaid a debt maturity of 4 billion yuan ($547 million), reports the financial news agency Bloomberg.

Sectors linked to China continue to suffer, starting with luxury.

LVMH lost 1.70% to 701.20 euros, Kering 2.08% to 430.40 euros, Hermès 1.58% to 1,704.60 euros around 09:45.

In addition, the United States is again facing the threat of a paralysis of his administration because of a political deadlock, four months after it came close to default.

Airbus flies with Air France

The Franco-Dutch group Air France-KLM (-0.74% to 11.74 euros) will place a "significant order" for 50 long-haul Airbus A350 aircraft in order to "continue the renewal and rationalization of its fleet" with more fuel-efficient aircraft and emitting less CO2.

The share of the European aircraft manufacturer Airbus took 0.24%.

Carmat at the heart of concerns

The French group Carmat, designer of an artificial heart, warned Monday to have financial visibility "until the end of October", being however "very confident" about its ability to inflate its cash flow and accelerate the pace of sales from the fourth quarter.

Its share fell by 43.24% to 4.20 euros.

© 2023 AFP