(CercleFinance.com) – The Paris Stock Exchange ended the session down 1.54%, at 7,098 points, penalized by the heavy decline in the automotive sector, with -4.3% for Renault, -3.5% for Stellantis or -3.1% for Michelin on the CAC40. On the SBF 120, the values of the auto sector are also suffering with in particular -5.9% for Valeo or -5.3% for Faurecia.
With a decline of almost 3% over the last three sessions, the start of the week for the Parisian index is completely against the grain of ‘macro’ news.
On Wall Street, the decline of the S&P, Dow Jones and Nasdaq remains slightly below 1% while a decisive vote is expected today in the House of Representatives (with a Republican majority) then Friday in the Senate (with a Democratic majority) concerning raising the debt ceiling.
The case is all the more worrying since the Treasury Department has estimated June 5 as the date on which the government will run out of cash.
The sluggishness of the market is quite paradoxical this Wednesday insofar as the risk of ‘shutdown’ by June 5 has been ruled out by 90% in the United States and the inflation figures for the day are reassuring.
On the statistics front, in France, inflation slowed to 5.1%, thus marking a clear deceleration after +5.9% the previous month.
Growth (GDP) for the 1st quarter stands at 0.2% (no recession, unlike Germany) according to detailed CVS-CJO data from INSEE, after a stagnation observed in the 4th quarter of 2022.
‘The difficulty of the moment is to bring together enough elements to relaunch the progression of the Parisian index’, say analysts at Kiplink Finance.
On bonds, German Bunds fell -7pts to 2.27%, our OATs erased -6pts to 2.842%, US T-Bonds -4.2pts to 3.66%.
In French company news, Stellantis, in collaboration with TotalEnergies and Mercedes-Benz, inaugurated the Automotive Cells Company (ACC) battery gigafactory at the Billy-Berclau/Douvrin site in France, the first of three gigafactories planned in Europe.
Moody’s also announces that it has changed its outlook on Stellantis from ‘stable’ to ‘positive’, on its confirmed ratings for long-term issuer and senior unsecured instruments ‘Baa2’ and on its other short-term ratings ‘( P)P-2’.
TotalEnergies said on Wednesday that it was going to join forces with the Belgian start-up TES to develop an e-gas production unit in the United States. The firm also announced that it had signed a production sharing contract for the Agua Marinha block in Brazil.
Finally, Bouygues announces the successful placement of a bond issue for an amount of one billion euros at eight years (maturity July 17, 2031), bearing a coupon of 3.875%, ‘confirming the market’s confidence in the quality of group credit.
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