(CercleFinance.com) – The Paris Stock Exchange lost 2% and fell back to 7,000pts (after a green 6,970 incursion) weighed down by the fall in banking stocks, with nearly -7% on Société Générale, -5% on BNP Paribas and -4% on Credit Agricole, in the wake of Deutsche Bank (-13% towards 8.2E) which suffered massive releases (70 million shares in 6 hours, i.e. 10 average trading sessions) while ‘CDS ‘ (debt insurance) ‘price’ a risk of imminent bankruptcy at 33%!
The Euro-Stoxx50 also fell by -2% towards 4.120, just like Frankfurt, epicenter of the new banking stress which will involve the ECB (after the FED on Friday March 10, the SNB on Friday March 17).
On Wall Street, the indices reopened down moderately from -0.4% to -0.5%, but the regional banking sector (50% of credit distributed in the United States) remains under pressure for lack of a global solution, ruling out any risk. systemic.
But it’s not just Deutsche Bank on the menu on March 24: there were also figures in the US that do not support a rate easing by the FED.
Indeed, the US private sector saw its growth significantly accelerate in March, according to S&P Global, whose composite PMI index stood at 53.3 in flash estimate, a 10-month high, after s to have risen to 50.1 the previous month.
“Production experienced solid growth as demand conditions improved and new orders returned to growth,” says S&P Global, which also points to an acceleration in selling price inflation.
Small flat with a 1% decrease in durable goods orders in the United States last month, after a fall of 5% in January (revised from an initial estimate which was -4.5%).
The Commerce Department reports that transportation equipment orders, where orders contracted 2.8% month-on-month, US durable goods orders managed to remain roughly flat in February.
This morning, investors learned of the flash estimate for the S&P Global composite PMI index of overall activity in the euro zone. It recovered for a fifth consecutive month in March, standing at 54.1, a ten-month high, against 52.0 in February.
Growth was again supported by the performance of the services sector, whose activity recorded its strongest expansion since May 2022. In the manufacturing sector, on the other hand, activity levels stagnated in March.
The fixed income markets are benefiting from a climate of ‘risk-off’ and our OATs erased -8.5pts to 2.6300%, the Bunds è-9pts to 2.0960%.
On the other side of the Atlantic, the T-Bonds relax by -5Pts to 3.355%… but that does not prevent the Dollar from recovering 0.8% to 1.0740 (it serves as a refuge in case of stress) and the Gold returns to the symbolic cap of $2,000 an ounce (it is also a relevant refuge in the face of a climate of monetary ‘all-in’ on the part of central banks).
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