(CercleFinance.com) – This last session of the week was this morning – and remains – soporific: the Paris Stock Exchange has lost between -0.2% and -0.3% since 9:30 this morning, and the CAC40 which is coming back in equilibrium remains literally prisoner of an 8,080/8,100 corridor since 10:15 a.m…. in algorithmic straitjacket mode (with only 1.1 billion euros exchanged, after 2.5 billion euros the day before… and a tiny 1.8 billion euros on Monday.
The week will therefore end with a decline of -1% in the CAC40… which also marks a stagnation of this index for 1 month.
The Parisian index is thus heading towards a second consecutive week of decline despite the promising news of the last few days.
The Euro Stoxx50 lost -0.2 but showed the same weekly score as the CAC40, i.e. around -0.9%.
Wall Street, on the other hand, has just reopened on the rise, with scores which now range between +0.2% for the Dow Jones, clearly lagging behind the S&P500 which displays +0.8%, crosses 5,300 again and seems well on track to achieve a 5th consecutive week of increase… and a 27th closing record?
The Nasdaq (+0.9%) is already moving into record territory thanks to an advance of +200Pts compared to Friday 17 (beyond 16,900): but all of these gains result from Nvidia’s +10% on Thursday, to which the title adds 1% towards $1,050, for a capitalization of $2,600 billion.
This is becoming a habit since Nvidia represented 100% of the increase in the S&P500 on Thursday evening (which was then down -0.3%) since January 1 (even no need to add the increases in Alphabet, Microsoft and Meta).
The excitement of the Parisian market and European markets is fueled by the rise in bond yields this week: Bunds re-tested 2.60% before easing by -1Pt towards 2.59%, our OATs erased -1 .5Pt towards 3.070% (i.e. +7Pts weekly), Italian BTPs show -1Pt towards 3.89%.
This tension stems from this week’s news flow, which only reinforces the feeling that inflation remains a problem for the US economy and the FED.
In Europe, the rise in PMI indices attesting to economic recovery could also lead to more inflation via wages and import prices (tax war in the EU, the US and China).
The negative impact of rates would have been much more evident without the stratospheric results from Nvidia and the PMI indices attesting to the economic recovery in Europe.
T-Bonds stabilize at around 4.48% for the ’10 year’ and 4.94% for the ‘2 year’ (+1Pt) despite new ‘robust’ US figures: orders for durable goods increased by 0 .7% in April in the United States (after +0.8% in March), while they were expected to decline by 0.9%. Excluding defense and aeronautics, they increased by 0.3% against +0.1% expected, after -0.1% in March.
Investors discovered the Michigan consumer confidence index at 4 p.m.: it was 1.7 points higher than expected in May, at 69.1… but down significantly from 77.2 in April.
The prospect of interest rates remaining at the highest level for several more months is weighing on consumers’ plans.
On the European side, the business climate in France appears stable in May compared to April, given the synthetic indicator calculated by INSEE which remains at 99, just below its long-term average (100 ).
Across the Rhine, growth in the German economy reached 0.2% in the first quarter compared to the previous three months thanks to the dynamism of exports and investment spending, show detailed statistics published Friday, confirming the estimate initial.
On FOREX, the Euro strengthened with +0.3% against the Dollar (1.0845), the greenback fell symmetrically by -0.3% against the main currencies (‘$-Index’ at 104.80 against 105.1 the day before).
The barrel of Brent rebounded at the last minute from the floor of $81.5, to $81.80 in London, the WTI recovered by +0.6% towards $77.5 on the NYMEX.
The Ounce of gold is trying to resist the tension in rates towards $2,340, or around -$100 compared to Monday.
In French company news, Alstom indicates that it has placed a super-subordinated (‘hybrid’) bond issue for an amount of 750 million euros, ‘massively oversubscribed, reflecting strong demand from different geographic areas and categories of investors’.
Teleperformance announces that its board of directors has decided to cancel three million treasury shares, representing 4.7% of the share capital, shares which had been repurchased as part of a program implemented in April 2023 .
Finally, Renault gained more than 3%, signing the largest increase in the CAC 40 and the SBF 120 index. In a note released in the morning, UBS indicated that it had moved to a ‘neutral’ opinion, versus a ‘neutral’ opinion. sell’ previously, with a price target increased from 31 to 50 euros.
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