The Paris Bourse ended close to equilibrium on Wednesday (-0.03%), at the end of a volatile session during which many indicators, tensions around the Covid-19 in Europe and the policy of the US Federal Reserve have occupied investors.
The flagship CAC 40 index fell by 2.39 points to 7,042.23 points. The day before, it had finished down 0.85%.
The Parisian odds began the session in a sharp rebound, reaching 7,090 points, before falling below 6,990 points in the middle of the afternoon, then moving forward.
The volatility was exacerbated by an avalanche of statistics, ahead of a public holiday in the United States on Thursday, where trade is expected to be less nourished also in Europe.
Among them, new weekly jobless claims in the United States fell in mid-November to their lowest level in more than half a century, confirming the robust recovery of the American labor market.
Too good news? The US Federal Reserve (Fed) had indicated that it was going to rely in particular on the job market to determine the pace of the reduction in its support to financial markets. This statistic confirms market expectations for a hike in key rates earlier than previously envisaged.
Especially since the institution is under the pressure of inflation: American consumer prices jumped 5% over one year, their largest increase since 1990, according to the PCE index of the Department of Commerce, which confirms the release of another inflation measure earlier this month.
“The central banks have in their mandate the control of inflation, but they also aim at market stability. As soon as they fall too sharply, they recall their accommodating attitude”, explains to AFP Gilles Guibout, head of European equities at Axa IM.
In other statistics, orders for durable goods in the United States fell 0.5% in October, while analysts expected a slight increase.
Investors cannot look to Europe for good news: the rise in Covid-19 contamination and restrictive health measures to try to contain it are weighing on the outlook.
In Germany, entrepreneurial morale fell in November for the fifth time in a row.
The last minutes of the Fed, that is to say the report of the exchanges of the last meeting of the monetary committee, are expected in the evening.
Stéphane Richard in turmoil, not Orange
Orange shares fell 0.12% to 9.93 euros, while the board of directors is scheduled for the end of the day to decide on the future of Orange CEO Stéphane Richard, condemned by the court of appeal de Paris to a one-year suspended prison sentence in the 2008 arbitration case between Bernard Tapie and Crédit Lyonnais.
Source: Challenges en temps réel : accueil by www.challenges.fr.
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