(AOF) – The equity markets experienced another volatile session, but the latter experienced a favorable outcome thanks to the Bank of England and Wall Street. In sharp decline this morning, the CAC 40 index closed up 0.19% to 5,765.01 points while the EuroStoxx50 rose 0.27% to 3,337.61 points. US indices took the lead, with the Dow Jones gaining 1% around 5:30 p.m.
This stock market rebound was made possible by the easing of tensions on the long-term interest rate market thanks to the Bank of England’s emergency intervention. Faced with soaring long-term rates and a weaker currency in recent days, it announced temporary purchases of long-term UK government bonds starting today.
“The objective of these purchases will be to restore orderly market conditions. The purchases will be made in the quantities necessary to achieve this result,” the Bank of England said.
This intervention was felt in particular on the rates market and not only in the United Kingdom. While the yield on the British 10-year fell more than 50 basis points (!) to 3.98%, its American and German equivalents lost 18 basis points and 10 basis points respectively to 3.76% and 2. 13%.
This decline in rates penalized the banks, which ended up among the main declines in the CAC 40. They were accompanied by STMicroelectronics, whose first customer Apple should not increase its production of iPhone 14.
The fall in bond yields, on the other hand, benefited real estate companies, with the notable exception of Nexity. The real estate developer has unveiled 2026 objectives deemed “ambitious”.
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