(CercleFinance.com) – The Paris Stock Exchange should open slightly higher on Wednesday morning, in a market context that is still cautious in the face of the tensions that are agitating the bond compartment and while investors are awaiting several PMI indicators in Europe.
Around 8:15 am, the ‘future’ contract on the CAC 40 index – which has now switched to the September deadline – advances by 17 points to 7277 points, suggesting a rather favorable start to the session.
Market participants should nevertheless beware of taking too many risks before the publication, in the early morning, of the results of the latest PMI surveys in the euro zone.
The PMI indices were particularly disappointing last month on the Old Continent, thus confirming the probability of a ‘hard landing’ for growth as the German engine seems to be stalling.
For many analysts, the fear remains that the European Central Bank (ECB) decides to tighten its monetary policy too much.
“With the disinflationary trend well underway and growth proving to be worryingly weak, we believe that the ECB has tightened its monetary policy too much”, worry the Lombard Odier teams.
Growth in the euro zone reached only 0.3% during the second quarter, after zero growth in the first quarter and a contraction of -0.1% in the fourth quarter of 2022.
The session will also be punctuated by the results of the monthly surveys of purchasing managers (PMI) on activity in the American private sector, which should confirm the good resistance of the United States economy.
Wall Street ended down on Tuesday, weighed down by the banking sector in a market that is still struggling to digest the recent surge in bond yields, which are moving to 16-year highs.
The yield on 10-year US government bonds fell only timidly below 4.33%, after peaking above 4.36% yesterday.
The variations are more marked on the European bond market, where the German 10-year fell to 2.64%, far from the 11-year high of 2.75% established at the start of the week.
Oil prices are little changed, despite continued rate hikes and deep concern about the health of the Chinese economy.
‘The OPEC+ announcements to again reduce the level of their oil production seem for the time being able to maintain prices despite the unfavorable macroeconomic context,’ explains the energy consulting firm Omnegy.
US light crude (West Texas Intermediate, WTI) is trading below $79.7 a barrel while Brent is trading around $84.
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