(CercleFinance.com) – The weather is getting worse and the CAC40 drops -1.5% 45 minutes from the close (around 7.265).
The Paris stock exchange plunged more than 100Pts from the opening, with a big downward ‘gap’ at the end (below 7.313): it has since been filled but the CAC risks closing close to the ‘lowest’ of the day (7.242).
The almost continuous rise in indices that began in mid-December has just come to an abrupt end on Wall Street on Wednesday evening, immediately after the publication of the Fed’s ‘minutes’ which had the effect of an icy shower.
The Nasdaq, which had fallen by -3.35% the day before, fell again by -0.6% at the start of the session (test of the support of 15,000) before recovering and returning to 15,100.
Everything therefore changed with the minutes of the debates (‘minutes’) of the FED in mid-December: the leaders of the American central bank are considering a rise in rates at a faster pace than initially expected … and not ‘neutralize’ the balance sheet (the amount of its assets) by not buying new lines up to those expiring (contrary to the strategy planned by the ECB).
The yield on US T-Bonds has just rocketed to around 1.7400%, or exactly + 25 basis points in one week (compared to Thursday, December 30).
The tension in rates therefore took 48 hours before alarming Wall Street and the European stock markets: the Euro-Stoxx50 dropped -1.4% to 4,330 (it flirted the day before with 4,400).
In addition, investor morale deteriorated further this morning with the declaration of a state of emergency in Kazakhstan, which has obtained aid from Moscow for law enforcement operations in the face of the protests. which have shaken the country for several days.
As the country is a major oil producer, the market reacted strongly, with ‘WTI’ up 2% and tackling the strong resistance of $ 80.
In this context, all Asian stock markets ended in negative territory Thursday, with a decline of around 2.8% in Tokyo.
In terms of figures, the growth of the activity of the service sector in the United States was disappointing: the ISM index of ‘services’ stood at 62.0 against 69.1 (far from the expected 67). The resurgence of the COVID-19 epidemic would be largely responsible: the sub-index of ‘new orders’ fell even more sharply, from 69.7 to 61.5 in December, to the lowest for ten months.
The employment sub-index fell to 54.9 from 56.5 in December.
The US trade deficit contracted slightly to 80.1 from 81.5 in November.
The number of jobless claims in the United States rebounded from +9,000 from 24 to 31/12, to 207,000, beating a median forecast of 195,000.
In the United Kingdom, the CIPS / IHS Markit composite PMI index of overall activity from 57.6 to 53.6 in December 2021 (compared to 53.2 in initial estimate).
It is thus its lowest level since March 2021, and singularly, the growth of the activity of the services did not surpass that of the manufacturing industry, the two sectors having both posted indices of 53.6 .
It remains to discover the ISM of services in the middle of the afternoon.
In the news of French companies, Société Générale and ALD announce the signing of two separate memoranda of understanding providing for the acquisition by ALD of 100% of LeasePlan’s capital from a consortium led by TDR Capital, with a view to creating a a leading player in mobility solutions.
Dassault Aviation indicates having delivered, during the past year, 30 Falcon business jets (for a forecast of 25 deliveries and against 34 in 2020), as well as 25 Rafale fighter jets for export (in line with its forecast, compared to 13 in 2020).
Finally, Nanobiotix soared by 18% when the first patient was recruited for NANORAY-312, a pivotal phase III study evaluating NBTXR3 activated by radiotherapy in high-risk elderly patients with locally advanced squamous cell carcinoma of the head and neck.
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