(CercleFinance.com) – The CAC40 (+0.5%) has clearly reversed the upward trend after a very poor start to October and an initial decline of -1.6% to 5655 points: the index resumed +125Pts towards 5.790 and seems able to validate this gain.
Wall Street quickly doubled the bet after reopening up +1%, the Dow Jones (+2.2%) recrossed 29,000 (to 29,350) and the S&P500 climbed by +2.1%, the Nasdaq by +2% .
The Euro-Stoxx50 (+0.7%) is beginning to rebound, like the CAC40, after 12 sessions of decline out of 14 (it almost became the 13th today).
A few good surprises could arise among the many economic indicators that will follow one another as the week begins.
This is not really the case this Monday in Europe with the PMI indices of the manufacturing sector this Monday: in France for example, the PMI falls heavily from 50.6 to 47.7 and in Europe, the scores are the worst observed since May or June 2020.
Investors hope to reassure themselves with other data such as producer prices and retail sales in the euro zone.
In the United States, the ISM came out down at 50.2 against 52 expected (after 52.8 in August) but the manufacturing PMI came out at 52 against 51.8 estimated (after 51.5 in August) and thus remains in expansion zone: very difficult to draw conclusions from such contradictory figures that are supposed to bear witness to the same reality.
US operators should pay close attention to the ADP firm’s survey on private employment published on Wednesday, and especially to the Department of Labor’s monthly employment report, scheduled for next Friday.
‘Significantly weaker US data seems to be the only thing that could make the FOMC change its position,’ Capital Economics said last Friday, adding, however, that it forecast ‘relatively strong’ data for September.
On the bond markets, an upturn is emerging after the worst month in 50 years and an unprecedented destruction of bond value in the 21st century.
The Bunds ease by -20Pts towards 1.911, the OATs by -21Pts towards 2.502% and the Italian BTPs by -25Pts towards 4.25%: this counterbalance to the fall in yields could do a lot of good for European stock markets if it lasts another 2 or 3 days.
T-Bonds have eased sharply since 3:45 p.m. (ISM down?), by -20Pts to 3.604% and British Gilts by only -15Pts to 3.945% after Liz Truss gave up on the plan to remove the highest tranche of income tax, taxable up to 45%.
Note the oil rebound of +1% towards $88.6 in London while OPEC, which meets in Vienna on Wednesday, plans to reduce its production by 1 million barrels/day (faced with the risk of a drop in demand against a background generalized recessions).
In securities news, Kering Eyewear today announces that it holds more than 90% of the capital of the iconic American eyewear manufacturer Maui Jim, according to the terms announced on March 14 and after having obtained the approval of the competition authorities.
Societe Generale has announced that its Board of Directors has decided to propose Slawomir Krupa as a director to replace Frédéric Oudéa during the General Meeting of May 2023, then his appointment as Chief Executive Officer.
Worldline announces the finalization of the sale of its Terminals, Solutions & Services (TSS) business line to the Apollo funds, as announced on February 21. From now on, the independent company will operate exclusively under the Ingenico name.
Technip Energies says it has won a ‘large contract’ (between 250 and 500 million euros) to supply proprietary equipment for INEOS Olefins Belgium’s 1450 kilotonnes per year ethane cracker in Antwerp, Belgium.
Vinci announces that it has signed two major contracts for high-voltage lines in Brazil, namely a PPP (public-private partnership) contract and a design-build contract, projects which contribute to developing the local activity of its subsidiary Cobra IS .
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