(CercleFinance.com) – The Paris Stock Exchange widens its losses a little further (-0.9% towards 7,990), penalized by Stellantis (-9.2%), Renault (-6%) and Téléperformance (-5%) .
The Euro-Stoxx50 fell by -0.7% below 4,945 while Wall Street remained very stable since the opening with falls of -0.3% (S&P500 and Dow Jones) to -0.4% (Nasdaq which sinks below 16,000).
The monthly balance sheet would therefore be close to -2% in Paris and on the E-Stoxx50, the ‘S&P’ and the Nasdaq could show -0.3% by this evening.
A halt to 5 months of increases, but not a major shift, especially since the tension in rates could have caused much more damage to the ‘technos’ (the most vulnerable to the deterioration of credit conditions).
Also note the incursion of bitcoin below $61,000, with a new test of the pivot zone (and major support) of $60,500.
On the eve of the May 1 public holiday – which will see the main places in continental Europe remain closed – today’s session promised to be rich in economic statistics, starting with inflation on the Old Continent.
Thus, the annual inflation rate in the euro zone is estimated at 2.4% in April 2024, therefore stable compared to its level in March, according to a rapid estimate published at 11 a.m. by Eurostat, the statistical office of the European Union.
Furthermore, during the first quarter of 2024, seasonally adjusted GDP increased by 0.3% in the Eurozone and the EU, compared to the previous quarter, according to the preliminary flash estimate published by Eurostat, the statistical office of the European Union.
Earlier in the morning, investors took note of France’s gross domestic product (GDP), which is growing moderately in the first quarter of 2024 (+0.2% after +0.1% in the previous quarter), according to the first estimate ( in data adjusted for seasonal variations and working days) from INSEE, inflation slowed to +2.2%.
In Germany, GDP grew by 0.2% in the first quarter of 2024 sequentially, in volume and in CVS-CJO data, according to a first estimate from Destatis, after a decline of 0.5% in the fourth quarter of 2023.
On the bond market, all the gains of the day before are lost, and even a little more: our OATs (+6.1 points at 3.085%) return to the worst levels of the year, as well as the Bunds (+6.2 % to 2.588%), Italian BTPs rose by 6 points to 3.879%.
No better across the Atlantic where T-Bonds rose by +5.5 points to 4.669%, the ‘2 years’ by +5 points to 5.023%.
The markets are still facing uncertainties surrounding the tone of the Fed press release which will be published tomorrow evening.
No rate change is expected on occasion, but the speakers will dissect the language relating to inflation: it was almost unthinkable 3 months ago, but the hypothesis of zero rate cuts in 2024 and an increase in January 2025 (in 9 months) now garners 33% of the votes, while a first rate cut in September has a marginal majority.
The last few weeks have been clearly marked by a spectacular downward revision of expectations for rate cuts in the United States for 2024, from seven to potentially zero.
The Dollar took the opportunity to strengthen a little against the Euro this year (the Euro fell by -0.2% towards 1.0700, or -3% since January 1), and a lot against the Yen (- 0.7%) which falls towards 157.5/$ (-12% this year).
‘Brent’ oil consolidates by -0.8% but remains anchored at or above $88 in London ($87.8).
The session is also punctuated by numerous quarterly publications from companies on both sides of the Atlantic.
In the news of French companies, Air France-KLM publishes a net loss of 480 million euros for the first three months of 2024, increased by 143 million in annual comparison, with an operating margin deteriorating by 2.5 points to settle at -7.4%.
Stellantis this morning reported net sales of €41.7 billion for the first three months of the year, down 12% year-on-year. For comparison, the consensus expected a figure of around 43.5 billion euros.
Thales publishes a turnover of 4,421 ME in the first quarter of 2024, compared to 4,026 ME in the first quarter of 2023, up 9.8% in published data, and 7.9% at constant scope and exchange rates.
Finally, Arnaud Lagardère, Chairman and CEO, today informed the directors of Lagardère SA of his indictment. He contests and will appeal. This indictment essentially concerns facts concerning personal companies belonging entirely to him and not involving any company in the Lagardère group, the group specifies.
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