The desire to buy on the cheap fizzled out on the Paris Stock Exchange, while Wall Street attempted a jump at the start of the American session. The environment remains marked by poor economic indicators, while central banks are more aggressive in their attempt to contain inflationary pressures on both sides of the Atlantic.
Around 4 p.m., the Bedroom 40 gives up 0.47% to 5,889.04 points, after a peak at 5,957.13 (+0.68%) and a floor at 5,830.87 (-1.44%) in a business volume of 1.7 billion euros. In New York, the Dow Jones recovers 0.59% and the Nasdaq Composite 0.80%.
If weekly jobless claims fell from 2,000 to 229,000 in the United States, the four-week moving average is at its highest since January. The S&P Global composite index (synthesis between industry and services) of the American private sector is at its lowest for 5 months at 51.2 points, weighed down by a new slowdown in demand. In the eurozone, the same composite index fell to a 16-month low of 51.9 points.
A recession is possible
Recently under attack, luxury values are sought after like LVMH (+1.9%), while banks remain under pressure. BNP Paribas thus loses 4%. Oil prices are starting to fall again as the US Energy Secretary prepares to receive the bosses of the main US oil companies for an emergency meeting.
Jerome Powell, who is to address the House Financial Affairs Committee, repeated yesterday in the Senate that the central bank is ” firmly committed to lowering inflation a message that suggests the Fed will continue its cycle of steep rate hikes. He also acknowledged that these tightenings could cause the economy to contract and that a soft landing “ would be very difficult adding that a recession was ” definitely a possibility “.
Rumors about Atos, green light for Valneva
Atos advance of almost 7%. Thales would have the support of the Ministry of Economy and Finance and the Directorate General of Armaments to try to take over the cybersecurity activities of the digital services group, according to BFM Business.
Eurofins Scientific increased by 2.3%. Deutsche Bank raised its recommendation on the title from “sell” to “hold” while maintaining its price target at 80 euros. The same broker initiates hedgingUbisoft (+1.6%) to “purchase” with a target of 60 euros.
Finally, Valneva announced that the Committee for Medicinal Products for Human Use of the European Medicines Agency has recommended marketing authorization in Europe for its candidate vaccine against Covid-19. To avoid any speculation, the biotech had asked for the trading of its shares to be suspended this morning.