(CercleFinance.com) – The scenario is relatively classic in this ‘4 witches’ session (quarterly maturity): the Paris Stock Exchange continues its downward movement that began on Tuesday afternoon but the CAC40 (-1.1% to 6,093) seems able to preserve the oblique support at 6.090.
The weekly balance sheet is negative by -2% but what is more striking, the September deadline could turn out to be negative by almost -8%.
Among our neighbours, the heaviness is just as present with -1.3% in Frankfurt and -1.1% for the E-Stoxx50 which aligns a third session of decline in the wake of a flurry of American economic indicators ranging in line with the continuation of the Fed’s very restrictive monetary policy.
The catalyst for this decline is the warning on its activity and its margins from the giant FED-EX, which is down -22%.
This company is considered a good barometer of the present and future activity of the economy, not only in the United States but throughout the world.
Added to this big disappointment is a certain caution in the run-up to the Fed meeting, scheduled for next week.
‘The ambient volatility is still as important and weighing on the evolution of the index’, believes the asset manager Kiplink.
In the euro zone, only the final inflation figures for August were released in the morning (they confirm the preliminary estimates), while Michigan’s consumer confidence index improved further in September, even if its progress was less marked than expected, show the preliminary results of the monthly survey from the University of Michigan.
The confidence index compiled by this Midwestern university thus stood at 59.5 this month, against 58.2 in August and 60 expected by economists and analysts.
The sub-index measuring consumers’ judgment of their current situation rose slightly, to 58.9 from 58.6 the previous month, but the one measuring changes in their expectations improved more markedly, standing at 59.9. after 58 in the month of July.
Thanks to the continued decline in energy prices, household inflation expectations over a one-year horizon have eased to 4.6%, their lowest level in a year.
Wall Street, which had already shown heaviness on Thursday, had reopened in sharp decline: Dow Jones is now limiting the damage to -0.7% (30,740) and the Nasdaq Composite or the S&P500 are down 1%.
The trend remained penalized by tensions on the side of bond yields, the 10-year rate having thus climbed to nearly 3.46% to approach its annual highs, that of the ‘1 year’ settled beyond the 4% (to 4.05% at its highest since October 2007) and could continue towards 4.50%, the ‘2-year’ is testing 3.90%
The yield on 10-year Treasuries hit their highest since the end of October 2007, at 3.482%, the ’30-year’ stands at 3.54%, which propels mortgage rates beyond 6% (again , we have to go back to 2007).
In Europe, our OATs posted a deterioration of +7pts towards 2.36% (a high since June 21) and the annual zenith of 2.48% on June 16 is very close, while the Bunds tightened by +5.5Pts to 1.79% (the 1.800% was briefly exceeded).
More worryingly, the spread between Italian (4.08%) and German 10-years widened again to flirt with 230 basis points.
For its part, the euro relapsed by -0.5% towards $0.9950, with short-term bond yields at their zenith across the Atlantic, as we have seen.
In China, value-added industrial production, an important economic indicator, rose 4.2 percent year on year in August, according to data released Friday by the State Bureau of Statistics (NBS). The figure is 0.3 percent higher than the previous month, the BES said.
The CSI 300 index of the main Chinese stocks lost 1.8% following the publication of these figures, while on the Tokyo Stock Exchange, the Nikkei showed a more limited decline of around 1.1% at the end of the session. .
On the oil market, crude prices (+0.5% to $91.3) are struggling to rebound as the latest report from the International Energy Agency (IEA) warns of a sudden halt in demand for hydrocarbons in the course of the fourth quarter.
The barrel of American light crude oil (West Texas Intermediate, WTI) is currently stabilizing around the $85 zone.
On the side of news on values, Virbac plunged -8% below 300E, weighed down by the rise in its production costs.
Engie finalized the sale of 2,224,702 shares of Gaztransport & Technigaz (GTT’) at a price of 115.50 euros per share and thus raised 256,953,081 euros as part of a private placement by way of accelerated construction of an order book with institutional investors executed in accelerated form.
The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has issued a positive opinion and recommends the approval of Sanofi’s Beyfortus (nirsevimab) for the prevention of lower respiratory tract infections caused by RSV in newborns and infants.
Eiffage has been named winner of an additional section of the E18 motorway in Norway for an amount of more than 370 million euros. The group had already won the contract for lot 1 (Langangen / Lanner) and lot 3 (Kjørholt / Rugtvedt) of this section of the E18 motorway in December 2020.
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