(BFM Bourse) – The Paris Stock Exchange continues a new session of decline, the euphoria winning Nvidia has not crossed the Atlantic. The CAC 40 lost 1.3% on Tuesday evening, undermined among others by the heavyweight of the TotalEnergies rating.
The Paris Stock Exchange does not opt for risk-taking on Tuesday. Investors are indeed on the lookout for any progress on the review of the agreement passed this weekend between Democrats and Republicans about the US debt ceiling.
Down slightly by 0.3% at mid-session, the CAC 40 widened its losses in the afternoon below 7300 points. It ended down 1.29% at 7209.75 points, erasing its progress made last week.
The relative resistance of the American markets did not encourage the star index in Paris to change direction. Back from a long weekend, the New York Stock Exchange begins trading this shortened week up slightly. The Nasdaq, the star compartment of technology stocks, stands out thanks to Nvidia, which crossed the bar of 1,000 billion dollars in market capitalization from the opening. The graphics processor specialist is the stock market star of this year 2023, benefiting from a strong enthusiasm for ChatGPT, and, more broadly, for generative artificial intelligence.
An agreement that still needs to be reviewed
Despite this parenthesis, risk aversion remains very palpable on the eve of major events this week. The agreement reached between Republicans and Democrats to raise the debt ceiling must still pass the caudine forks of Congress, where each camp could express its dissatisfaction with the compromise reached. The vote will take place on Wednesday in the House of Representatives, then a priori Friday or Saturday in the Senate, according to the leader of the Democrats, Charles Schumer, quoted by AFP.
Regarding the other major events of the week, the most important will take place on Friday with the publication of the US employment report for the month of May. This is important data for gauging the Fed’s conduct on its future monetary policy as the forecasts lean in favor of another key rate hike in June.
“The market expects two things at this stage: to see if this agreement will be passed by Congress on the one hand and the second thing being that the problem of persistent inflation refers to the next decision of the American central bank (Fed ) in mid-June”, which risks raising its key rates further, explains Alexandre Baradez, quoted by AFP.
Still on the macroeconomic chapter, operators took note of a sharp decline in inflation in Spain, with consumer prices rising by 2.9% year on year in May, after 3.8% on an annual basis in April. . Inflation figures for the euro zone as a whole will be due on Thursday.
As for US consumer confidence, morale is at its lowest since November, with an index of 102.3 points. It appears less degraded than feared by the market.
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TotalEnergies suffers from the drop in black gold
As for several sessions already, the news on the corporate front is reduced to a bare minimum. Note Valeo’s 0.77% increase at the close. The automotive supplier announced on Monday a “strategic cooperation and investment agreement” with the Chinese Didi Autonomous Driving to develop safety solutions for autonomous taxis.
On the other hand, TotalEnergies lost 3.43%, undermined by the sharp drop of almost 4% in oil prices before the OPEC+ figures on production.
Up much of the session Valneva finally turned down (-2.07%). The group has however indicated the filing of a marketing authorization application for its vaccine candidate against chikungunya, a disease transmitted by mosquitoes, with Health Canada.
Nexity dropped 7.83% to 19.65 euros, penalized by an analyst degradation. AlphaValue indeed lowers its recommendation to sell on the title of the real estate developer as well as its target price to 16.50 euros against 23.20 euros previously.
On other markets, the euro fell 0.1% to 1.0699 dollars. For its part, oil relapses before the OPEC+ figures on production. The contract for July on Brent from the North Sea dropped 3.7% to 74.20 dollars a barrel around 5:45 p.m. while that of the same expiry on WTI listed in New York fell 4.03% to 70.01 dollars. the barrel.
Sabrina Sadgui – ©2023 BFM Bourse