(BFM Bourse) – The Paris Stock Exchange limits its gains this Thursday evening, in a market undermined by new tensions on the bond market after a new American indicator testifying to the robustness of the world’s largest economy.
Even Nvidia’s stratospheric results are no longer enough… At least on the Paris Stock Exchange which narrowly closed at 8,100 points. Its flagship index, the CAC 40, limited its progression to 0.13% at 8,102.33 points this Thursday evening.
Macroeconomics was responsible for spoiling the party of investors who had welcomed Nvidia’s breathtaking results with some relief. The American processor giant once again shattered expectations in the first quarter when its prospects were also praised.
Enough to fuel enthusiasm for a title which exceeded the symbolic milestone of 1,000 dollars from the opening this Thursday on Wall Street. And thanks to Nvidia, the S&P 500 and the Nasdaq recorded new highs, at 5,341.88 points and 16,996.38 points respectively.
And yet these records for the two American indices were reached while investors are assailed by doubts about monetary policies. The minutes of the American Federal Reserve are tinged with caution, since certain members of the institution have even mentioned the possibility of further tightening monetary policy in the event that inflation remains stubborn.
And the latest statistics published this Thursday in the United States further confuse the issue. The latest weekly unemployment registrations were lower than expected, at 215,000 applications. And, above all, an indicator of activity in the American private sector has accelerated more than expected.
The S&P Global composite PMI rose to 54.4 in May, in a preliminary estimate, from 51.3 points the previous month. This is its highest level in almost two years. These are all signals which testify to the robustness of the world’s largest economy, and which in turn fuel tensions on the bond market. The yield on 10-year American debt is now approaching 4.50% while the yield on French debt of the same maturity is tending to 3.079%.
In Europe, the latest activity figures (PMI Flash HCOB composite index) show divergent dynamics within the countries of the monetary union. If in Germany, private sector activity grew more briskly than expected, in France, on the other hand, it contracted slightly to 49.1 in May, after 50.5 in April. The threshold of 50 distinguishes a contraction from an expansion of activity. In the eurozone as a whole, it went from 51.7 in April to 52.3 in May, its highest level for 12 months.
STMicroelectronics in good shape after Nvidia
Among French companies, Euroapi jumped 10% after announcing an agreement to produce active ingredients for a global animal health company. The expected total value of the contract is of the order of 130 to 150 million euros, over the period 2025-2029.
On other markets, the euro is almost stable at $1.0830. Oil prices are falling again. The July North Sea Brent contract fell 0.7% to $81.30 per barrel, while the July WTI contract fell 1% to $76.83 per barrel.
Sabrina Sadgui – ©2024 BFM Bourse