The Paris stock exchange closed down 0.18% on Tuesday, driven by central banker speeches that are pushing investors to revise their expectations on the timing of interest rate cuts by monetary institutions. The CAC 40 index finished at 7,3641.11 points, down from a 0.72% decline on Monday.
“The market today is down but not in turmoil,” said Lucas Excoffier, head of continental brokerage at Oddo BHF. “The uncertainties about the timing of central bank interest rate cuts are the central theme of the session,” continues the trader.
“Investors were hoping to see these first-rate cuts in the spring and these expectations are being called into question as central bankers speak,” details Lucas Excoffier.
Investors turned toward a speech from a Governor of the Federal Reserve (Fed), Christopher Waller, in the late afternoon. He indicated that there was “no reason to proceed with rate cuts as rapid as in the past” and that it would only happen if “inflation does not rebound.”
With regards to the European Central Bank (ECB), three members delivered cautious speeches regarding a possible interest rate cut in 2024. On the bond market, France’s ten-year note was at 2.75%, up from 2.73% at Monday’s close.
In other market news, Air France-KLM and CMA CGM are facing the end of their partnership in freight and a potential divorce, despite CMA CGM remaining the third largest shareholder in the airline group. French market research company Ipsos has announced the acquisition of the British company Jarmany, specialized in data analysis and management, continuing its consolidation efforts. Lastly, Vivendi, the parent company of the audiovisual group Canal+, has seen a decline of 0.90% to 9.87 euros after announcing the upcoming acquisition of the pay-TV operator OCS from Orange.
