(CercleFinance.com) – (CercleFinance.com) -The CAC40 experienced a small slump around 4 p.m. but the air pocket around 6.065 was quickly filled and the index returned to position itself within a 6.095 corridor /6.125.
The buyers keep their hand but the gains do not exceed 0.3% on average (6,110 constituting a pivot), the Euro-Stoxx50 on the other hand shows more determination with +0.5% at 3,506, in the wake of the DAX- 40 with +1%.
Wall Street is evolving without any real trend with an S&P500 up slightly (+0.3%) and a Nasdaq up 0.1%.
Investors remain on the defensive before the important economic meetings of the days to come, starting with the ECB meeting scheduled for Thursday. The interruption of Gazprom’s deliveries this weekend revived the specter of an energy shortage in Europe and the scenario of an imminent entry into recession.
‘Fears of energy rationing and an increase in the cost of living have stung investors, dragging down the values of the automobile industry and large retailers,’ explains Liberum.
The big highlight of the week will be the monetary policy decision of the ECB, which will publish its monetary policy decisions on Thursday before the traditional conference of its president Christine Lagarde.
After reducing interest rates to 0% at its meeting in July, the institution should raise its key rates by at least 50 basis points the day after tomorrow (the consensus expects 60% on +75Pts basis) and communicate that further interest rate hikes are needed.
“The ECB seems determined to put the fight against inflation ahead of concerns about growth, the macroeconomic configuration remains complex and the political risks high,” said Konstantin Veit, portfolio manager at PIMCO ahead of the meeting.
In terms of figures, the activity of the American private sector contracted more than initially estimated in August, according to the composite PMI index of S&P Global, which comes out at 44.6 in final data, after 45.0 in estimate flash and 47.7 for the month of July.
‘Although manufacturers also recorded a decline, the decline was driven by service providers’, underline the investigators, specifying that the tertiary sector saw its index fall from 47.3 to 43.7 from one month to the other.
On the Tokyo Stock Exchange, the Nikkei index ended the day up 0.02%, while the CSI 300 index of major Chinese companies listed in Shanghai and Shenzhen recovered nearly 0.5%.
Trending lower throughout the day yesterday, eurozone benchmark yields now appear to be stabilizing, a sign that some caution remains warranted in bond markets.
That of the German Bund at ten years is displayed at 1.56% and that of the French OAT of the same maturity at 2.185% (against 2.195% the day before).
In the United States, after a 3-day bridge, the T-Bond 2032 saw its yield tighten by +15Pts towards 3.34%, returning to its worst annual levels.
The euro suffered the repercussions of the rise in US rates and relapsed -0.35% below 0.9900, towards 0.9890.
On the energy market, the ‘Brent’ crumbles by -0.6% in London (around $93.6, the barrel of American oil stabilizes around $87 after having briefly crossed the 90 dollar mark yesterday following the decision of OPEC + to reduce its production.
On company news, Safran announces that it has entered into negotiations with Thales with a view to acquiring its aeronautical electrical systems activity, which employs nearly 600 people and generated revenue of 124 million euros in 2021.
Casino indicates that its board of directors has approved the principle of the proposed separation of GPA and Grupo Éxito via the distribution of around 83% of the capital of Grupo Éxito to its shareholders, with a minority stake of around 13% being able to be sold later .
Air Liquide welcomes the decision of credit rating agency Moody’s to raise its long-term rating to ‘A2’, from ‘A3’ previously, as well as its short-term rating to ‘P1’, from ‘P2’ previously. These ratings come with a ‘stable’ outlook.
Moody’s highlights the stable and resilient nature of the results as well as the Air Liquide group’s self-financing capacity. The short-term rating upgrade reflects in particular its solid liquidity profile.
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