(CercleFinance.com) – The CAC40 (+0.05%) will definitely go nowhere and continues a 4th stagnant session, just above 7,220Pts in conditions of illiquidity and evaporation of volumes such as it has never been observed in the 21st century: less than 1.2 billionE exchanged in 8 hours of quotations, 1.5 billion will not be reached by 5:30 p.m., 2.5 billionE are not guaranteed at 5:35 p.m.
It would be the 4th consecutive session at less than 2.6 billion euros: unheard of.
At this stage of the week, the CAC 40 is posting a limited weekly decline of around 0.7%, but is preserving its major support of 7,200 points for the time being, with trading half the average.
The session could have ended better in Paris: Wall-Street is moving up slightly this Friday at the start of the session: the Dow Jones gleans +0.3%, the S&P500 +0.5% and the Nasdaq, boosted by Tesla (+ 7% to $252) climbs +1% to 13,370.
Fears of a tightening of the monetary policies of the major central banks remain in the background, pending the meetings of the Fed and the ECB scheduled for next week (investors are 75% betting on a status quo on June 14 and 66% to be expected +25pts at the end of July.
Yesterday’s announcement of a ‘technical’ recession in the euro zone (-0.1%, that’s the thickness of the line), marked by two consecutive quarters of negative growth, also came heighten concerns about the health of the global economy.
Deprived of catalysts, the Parisian market seems – like the other world places – to seek a direction since the end of April.
In the absence of economic indicators, today’s session remains particularly calm, on both sides of the Atlantic.
The easing of tensions on the interest rate market could nevertheless encourage a small rise in bonds.
Sovereign yields eased at the margins: the yield on the 10-year German Bund, the benchmark rate for the euro zone, erased 2.2 Pts and returned to camp in the 2.40% zone, our OATs erased 6 Pts at 2.917%.
On the other hand, the 10-year US loan deteriorated by 4pts to 3.751%.
The dollar rallied slightly against the euro, which fell 0.25% towards 1.0755, but the greenback was heading for losses on the week, traders apparently betting on a ‘status quo’ from the Fed next week.
Oil is also expected to end the week on a negative note despite the announcement on Sunday of further OPEC production cuts.
The barrel of American light crude oil (WTI) trades at 71.35 dollars, Brent from the North Sea rises to 76$ (+0.6%).
The big winner of the week is gold so far – with a rise of 1.4% towards $1,964 – the yellow metal continues to benefit from robust demand, supported in particular by the risks weighing on the American economy.
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