Losses of around 1% today have taken France’s CAC 40 index back to approximately its Monday opening level. Strong gains from Monday to Wednesday looked set to result in a good return being booked in for the week. However, a relatively steep fallback which started yesterday have all but erased gains.
Wall Street’s surge led global equities markets this week as the Nasdaq, S&P 500 and Dow Jones all achieved 5 consecutive record high closes, running over from last week through to Wednesday. That set a new record but with a lack of any strong positive catalyst to maintain the rally it ran out of fuel yesterday. The Dow Jones managed to drag itself over the line with another incremental gain but the S&P and Nasdaq couldn’t quite manage the same feat and slipped by around 0.1% each. With Asian and European equities having already faltered earlier in the day to record losses, that pattern has intensified today.
Financials, spurred to strong gains earlier in the week on the reinforced prospect of two to three interest rate rises this year, have borne the brunt of the correction and profit taking today. BNP Paribas is down 2.63% and Societe Generale 2.78%. Both, however, have been outdone by Credit Agricole’s slump which has now slightly passed 3%. Insurer AXA is also down by 2.14%.
Carmaker Renault has also taken a hit of more than two percent having fallen 2.21% at the time of writing while peer Peugeot has lost 1.7%. A significant number of companies have dropped between 1% and 2%, including Airbus (-1.54%), ArcelorMittal (-1.25%), fashion holding Saint Gobain (-1.53%), Orange (-1.92%), Schneider Electric (-1.89%) and oil and gas contractor TechnipFMC (-1.57%).
There aren’t too many risers today but dairy group Danone has surged by a little over 4% to add a silver lining to the CAC 40’s day. The company posted positive earnings results on Wednesday. IT and management consultants Cap Gemini who also posted good results yesterday is also up again today though by a more modest 0.7%. Other gainers include L’Oreal, another earnings poster this week, up 1.4% and chemicals company Solvay with a 1.14% return.