(BFM Bourse) – The CAC 40 is clearly in the red after the publication of disappointing PMI indices and while negotiations on the American debt ceiling are struggling to move forward.
The Paris Stock Exchange sees clearly red this Tuesday. The CAC 40 dropped 0.7% to 7,423.59 points in mid-session, navigating between uncertainties about the US debt and unattractive PMI indices in the euro zone.
The eurozone flash composite PMI, published by S&P Global Research and which measures private sector activity, came in below expectations for May, coming in at 53.3 from 53.5. expected by economists, according to Capital Economics. Remember that the figure of 50 marks the border between an expansion and a contraction of activity.
The index corresponding to the manufacturing industry fell to a low of 36 months. “A sharp increase in activity in the services sector has indeed contrasted with an acceleration of the decline in production in the manufacturing sector”, notes S&P Global, which underlines “increasingly unbalanced growth” in terms of sectors.
“Productive” talks on debt
The issue of raising the US debt ceiling is also still blocked. President Joe Biden and House Republican leader Kevin McCarthy failed to reach an agreement after meeting overnight Monday through Tuesday. But Kevin McCarthy spoke of “productive discussions” with a better tone.
“The latest information, following the meeting between Joe Biden and members of congress yesterday, is that the discussions are going well, but that there is still a long way to go,” summarizes Vincent Boy, market analyst at IG France.
Bolloré leads Vivendi
As for values, Vivendi weighed down the CAC 40, falling 7% after the sale of shares in a subsidiary company of the Bolloré group. This operation weakens the scenario of a potential takeover bid by the Bolloré group on Vivendi, which several analysts saw coming in the fall, Vivendi then having to cancel shares, which should make the Bolloré group go beyond above 30% of the capital, threshold for automatic triggering of a takeover bid. But the sales of shares operated by Groupe Bolloré lend credibility to the idea that the company will sell shares by then to avoid going above this threshold.
Luxury is also under pressure, Hermes losing 3.6% and LVMH losing 2.9%.
On the smallest caps, Valbiotis wins 17% driven by positive clinical results for its dietary supplement aimed at preventing type 2 diabetes.
Bonduelle for its part wins 4.4% after the appointment of its new CEO, Xavier Unkovic, who has solid experience in North America, a region where the company is encountering difficulties.
It should be noted that the Casino share is currently suspended from trading while the group has given itself until 5 p.m. to request a conciliation procedure to renegotiate the terms of its debt with its creditor banks with potential rescheduling or acceptance of a discount.
On the other markets, the euro lost 0.3% against the dollar at 1.0778 dollars. Oil prices are well oriented. The contract on Brent from the North Sea for delivery in July takes 0.6% to 76.45 dollars a barrel while that of the same expiry on WTI listed in New York advances by 0.6% to 72.45 dollars on barrel.
Julien Marion – ©2023 BFM Bourse