The Strength of Interest Rates Continues to Weigh Down the Paris Bourse

Unless an unlikely last-minute turnaround occurs, it will be a week to forget for the CAC 40. The Parisian index is down 0.41% at 7166.64 points this Friday at mid-session, bringing its weekly decline to 1.9%.

While they have retreated slightly this Friday, bond yields remain at elevated levels, which is dampening risk appetite. The yield on the 10-year US Treasury bond remains nearly stable at 4.24%.

"Risk appetite seems to be faltering once again after several weeks of rebound. This is largely due to the rise in long-term interest rates, but also, more recently, due to a new episode in tensions between China and the United States," explains Sebastian Paris Horvitz of LBPAM.

"Indeed, Chinese authorities seem to be moving towards banning Apple iPhones for public sector employees. Since China represents 20% of sales, Apple's stock has been hit hard in the market, also affecting other major US technology companies," he elaborates. Apple's stock has thus lost more than 6% over two sessions, erasing nearly $200 billion in market capitalization.

The market may also be exercising caution as the European Central Bank holds its monetary policy meeting next week on September 14th. According to a Reuters survey, a majority of economists expect a status quo on interest rates.

On the stock front, Worldline is attempting to rebound (+2.3%) after losing over 7% in the last three sessions. In contrast, Renault, which had seen three consecutive sessions in the green, is facing selling pressure (-2%).

It's worth noting that the SBF 120 will undergo a significant reshuffling on September 18th, with three departures (Casino, Antin, and Altarea) and three new entrants (X-Fab, Lectra, and Argan).

Furthermore, an initial public offering is expected soon on the Paris market as Imeon Energy, which designs a solution to enhance the efficiency of solar installations through artificial intelligence, plans to raise €8 million on Euronext Growth.

In other markets, the euro is up 0.06% against the dollar at $1.703. Oil is trading slightly higher, with the November contract for North Sea Brent crude rising by 0.6% to $90.46 per barrel, while the October contract gains 0.5% to $87.30 per barrel.