Posted on Feb 27, 2019 2021 at 10:15Updated Feb 27, 2019 2021 at 10:28
The first will be the last. Behind the wind of panic that has shaken the world stock markets in recent days has played a small revolution. Long accustomed to prancing at the top of the equity markets, technology stocks have passed the baton to financial services and more broadly to the “old economy”. A trend favorable to European markets. The CAC 40 jumped 5.6% in February, exceeding 7,800 points for a while, even as the Nasdaq-100, the American index with a strong tech coloring, showed a decline over the month. The last time the Paris Bourse beat the Nasdaq was last November, after posting its best performance in over 30 years.
Of course, the rise in interest rates is worrying to the point of causing sudden bouts of volatility. Investor fears appear all the more justified as stock market valuations exceed the records of the internet bubble in certain market segments. But a lasting upturn in growth and inflation could largely redefine the hierarchy of sectors on the stock market. This gamble on an inflation “regime change” won over most equity markets in February, resulting in clear divergences in performance between sectors.