(BFM Bourse) – The CAC 40 is moving close to equilibrium at mid-session on Monday, while the PMI manufacturing indices in the euro zone suffered a stronger deterioration than initially estimated.
After having signed five consecutive increases last week, the CAC 40 lacks a bit of breath to accelerate further. At mid-session on Monday, the Parisian index nibbles 0.20% to 7415.03 points.
A flurry of relatively good indicators, including the PCE index, the US Federal Reserve’s (Fed) favorite gauge for measuring inflation, has fueled investor optimism recently.
“Falling inflation, along with some recently released economic data, keeps markets euphoric, careful to evade leading economic data, but also any comments from central bankers that monetary policy tightening is a long way off. to be finished”, notes Vincent Boy, market analyst at IG France.
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Luxury folds
The release of the PMI manufacturing index in the eurozone did not have a major impact on the trend. Final survey results show the index, which measures private sector manufacturing activity, fell to 43.4 in June, its lowest level since the pandemic, from 44.8 in May and 43.6 in June. a first estimate. An index below 50 marks a contraction in activity.
“There is growing evidence that the capital-intensive industrial sector is reacting negatively to ECB interest rate hikes,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, a bank that co -produces the index.
On the stock side, investors seem to be rotating assets within the CAC 40, selling luxury goods (Hermes lost 2.5% and LVMH, 1.6%) to buy group shares with valuation multiples low (Worldline takes 3%, TotalEnergies 2.6% and Société Générale advances by 2%).
SES-imagotag turned down losing 1.3% while the group had gained 3% around the first exchanges after the company announced several commercial successes in the United States, including the winning of a contract with a chain American convenience store.
Casino fell 8%, continuing its plunge that began three days ago. The distributor asked for “grace periods” for not honoring certain debts.
On the other markets, the euro dropped 0.2% against the dollar at 1.0886 dollar. Oil is rising as Russia said it would cut exports by 500,000 barrels a day from August. Saudi Arabia will extend the reduction of its production by 1 million barrels per day. This reduction, which will take effect in July, will continue in August.
The September contract on Brent from the North Sea rose 1% to 76.13 dollars a barrel while that of August on WTI listed in New York took 1% to 71.35 dollars a barrel.
Julien Marion – ©2023 BFM Bourse