(CercleFinance.com) – the Paris stock market is only up 0.1%, at 7,275, while the CAC40 erased its losses from Tuesday and gained up to 0.6% to 7,325 points, notably drawn by Stellantis (+3.5%) and by the rebound of LVMH, Hermès and above all Kering, which gained around 2% each.
On Wall Street, the month of March begins with a new consolidation of the Dow Jones of -0.2% and the S&P500 loses more than 0.5%.
It should be noted that the luxury sector is benefiting in particular from the good news from China where manufacturing activity is expanding in February, for the second month in a row.
The purchasing managers’ index (PMI) for the manufacturing sector stood at 52.6 last month, down from 50.1 in January, the National Bureau of Statistics (NBS) said in a statement on Wednesday.
Also according to the BES, factory production returned to normal at a faster pace than expected last month, indicating a continued improvement in the economic climate.
In France, on the other hand, the manufacturing sector is in contraction with an overall PMI S&P index falling from 50.5 in January to 47.4 in February.
The index was pulled down by new orders, the contraction of which accelerated for the first time since October 2022. This deterioration was reflected in production levels, which thus fell for a ninth consecutive month. .
In the United States, manufacturing activity continued to contract in February in the United States (to 47.7 last month, against 47.4) but the deceleration is slightly less strong than in January, shows the ISM monthly survey published on Wednesday.
The price paid sub-index, closely followed during this period of rising inflation, jumped to 51.3 against 44.5 the previous month.
New orders also rose to 47 from 42.5 in February.
The reading of the activity is a little different according to the ‘PMI’ of the American manufacturing sector, and the ‘PMI of S&P Global’ index finally stands at 47.3, against 47.8 in flash estimate and after 46.9 the preceding month.
The investigators point out in particular that the drop in new sales has led to a further reduction in production, albeit at a slower pace against the backdrop of better conditions in the supply chain.
The battery of statistics published today should fuel the debate on the rise in rates by the Federal Reserve and the ECB, resulting in a rise in the dollar and bond yields.
On the bond market, European long-term yields are rising again and set new multi-year highs.
The yield of the 10-year German Bund, a real benchmark in Europe, jumped back by +8pts to 2.714%.
Our OATs set a new ceiling at nearly 3.2% (tested in session) with +8.3Pts at 3.194%
On the other side of the Atlantic, the yield on 10-year Treasuries rebounded from 3.91% to 3.99%, after a peak of more than 3.97% yesterday, the latest American indicators having reinforced the prospect of a recession, and therefore a pause in the cycle of Fed rate hikes.
“If the US economy starts to weaken, this should reduce pressure on bond yields and weaken the US dollar,” said Steven Bell, chief economist at Columbia Threadneedle.
However, the Dollar suffered a heavy pullback of -0.6% towards 1.0655/E.
In corporate news, Eurofins Scientific (-13%) publishes for 2022 an adjusted net profit down 35% to 683 million euros, or 3.43 euros per share, as well as an adjusted EBITDA down by 20% to 1.51 billion, a margin down 5.8 points to 22.5%.
Atos (+6%) publishes a net loss group share of 1.01 billion euros for 2022, reduced compared to that of 2.96 billion for the previous financial year, but a lower operating margin rate by 0.4 point to 3.1% of turnover.
Neoen publishes for the past year an adjusted net profit up 19% to 48 million euros, as well as an adjusted EBITDA up 38% to 414 million, ‘in line with the announced objective’.
By 2030, Neoen (-14%) plans to reach a target capacity in operation or under construction of more than 20 GW. It also reiterates its ambition to achieve a rate of gain in new projects of at least 2 GW per year from 2025.
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
