(CercleFinance.com) – The Paris stock market ended almost at equilibrium, grabbing an anecdotal 0.08%, at 7,246 points, in reduced volumes with barely 2 billion euros traded since the opening.
Across the Atlantic, the S&P500 rose by +1.5%, testifying to investors’ confidence before the publication of Nvidia’s results this evening (they are almost as expected as those of Apple and bets are well underway on a rise of 100% of the profits, any lower performance would be considered disappointing).
On the statistics front, a few figures have just come in, notably sales of new homes in the USA, up 4.4%, with a score of 714,000 on an annual basis, better than the 704,000 expected.
On the other hand, investors face a series of disappointments concerning the ‘PMI’ (advanced indicators of activity), the latest to date coming from the United States: it is the very important PMI of ‘services’ which is falling around 51 instead of the expected 52.5.
But it’s much worse in the eurozone: the HCOB composite PMI flash index of overall activity in the Eurozone fell from 48.6 in July to 47 in August, its lowest level since November 2020, and even since April 2013 apart from the pandemic months (this is the third consecutive month of contraction).
Industry also slowed slightly in August, with services activity declining for the first time since December 2022.
As far as France is concerned, the HCOB composite flash PMI of overall activity remained stable between July and August, at 46.6, but this remains a 32-month ‘low’ and signals a sharp contraction. activity in the French private sector.
The services sector fell for the third month in a row, to a 30-month low of 46.7 (from 47.1 in July). Manufacturing output, on the other hand, rebounded from 44 to 45.8: this is a five-month high.
S&P Global notes that companies increased their workforce in August, but with a rate of job creation at the lowest since January 2021.
The only positive point is that the poor PMI are causing interest rates to fall by almost -13.5 Pts on OATs and -13 Pts on the basis of Bunds to 3.047% and 2.525% respectively then by -11.5 Pts on US T-Bonds at 4.2250%.
In the news of French companies, Dassault Aviation announces that the European Union’s EASA (European Aviation Safety Agency) issued the type certificate to its Falcon 6X on Tuesday, resulting in its certification by the FAA (Federal Aviation Administration) of United States that same day.
Focus Entertainment drops nearly 4% after the video game publisher’s announcement that the start of Atlas Fallen, ‘despite the qualities of the game and in a very intense competitive context’, is ‘below initial forecasts’ .
Finally, Alstom announced that it has won a ‘breakthrough contract’ with Irish Rail (Iarnród Éireann) to revolutionize rail travel and mobility on the Cork Area Commuter Rail (CACR) network.
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