(BFM Bourse) – The CAC 40 is falling in the mid-session as the market questions key central banks’ rate cuts.
CAC 40 continues its bad trend. The Parisian index fell 0.6% in mid-session on Tuesday, having already lost 0.7% a day earlier.
The market is penalized by rising US bond rates. The yield on the United States 10-year bond rose nearly 9 basis points (0.09%) this Tuesday to 4.013% versus 3.944% on Friday, Wall Street was closed on Monday due to the public holiday, Martin Luther King Day.
Moreover, futures contracts on American indices are oriented weakly, with the S&P 500 down 0.6%.
The market continues to wonder about possible rate cuts from major central banks, while some members of the European Central Bank (ECB) have tried to calm investor forecasts in recent days.
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Villeroy de Galhau calms things down
Bank of Austria Governor Robert Holzmann warned on Monday that “no one should bet on a rate cut this year”. This Tuesday, his counterpart at the Bank of France, Francois Villeroy de Galhau, a dovish (a central banker who worries about growth and jobs and less about inflation than other central bankers), told Bloomberg TV that the question of a rate cut was “premature”. .
On the values side, Dassault systems are different. The professional software publisher gained 2.2%, driven by Deutsche Bank, which raised its recommendation to “buy” versus “hold,” and determined that the stock’s valuation is redundant, with attractive prospects.
In contrast, Sartorius Stadim Biotech fell 4.7%, after UBS revised its opinion to “neutral” from “buy” earlier, believing the company has limited growth potential.
Elsewhere, the euro fell 0.7% to $1.0876 against the dollar, with the greenback benefiting from a rise in US bond yields. Oil is moving. The March North Sea Brent contract rose 1% to $78.92 a barrel, while the February contract for WTI listed in New York rose 0.6% to $73.14 a barrel.
Julian Marion – ©2024 BFM Bourse
