L’The flagship index of the Paris Stock Exchange fell below the 7,000 point mark on Tuesday, a threshold it had not crossed since last March, at the time of the banking crisis. The CAC 40 fell to 6,993.50 points around 3 p.m., down 1.06% compared to the previous day’s close, weighed down for ten days by the rise in interest rates on the bond market, which reached their highest levels in several years.
At its last meeting in September, the American Federal Reserve (Fed) was firmer than investors anticipated. It predicted that its key rates would remain at high levels in 2024, while the markets saw them falling again in the near future. Since September 20, the CAC 40 has lost more than 4.5%, while, at the same time, the interest rate on ten-year French government debt has fallen from 3.23 to 3. 48% and reached a new highest level since November 2011.
An overall increase of 8% in 2023
The yield on ten-year US government bonds also continues to rise and is at its highest level in almost sixteen years, at 4.74%. The same downward trend is observed on other stock exchanges. The Frankfurt Dax index is, like the CAC 40, at its lowest since March 2023. In the spring, a feeling of panic contaminated the banking sector after the bankruptcy of two American regional banks.READ ALSO CAC 40: remuneration starting to rise again
The shares of European groups had recorded sharp declines and, faced with fears of systemic consequences, Credit Suisse was urgently bought by its compatriot UBS, under pressure from the Swiss authorities. Since the start of the year, the Paris stock market has nevertheless posted an increase of more than 8%, the result of the good performance of the European economies.