(CercleFinance.com) – The Paris Stock Exchange (+0.2%) takes a breather after the +9% gained last month, making it “the month of July of the century” and the best since 1997.
The CAC40 has oscillated several times between -0.1% and +0.5% since 3 p.m. (the US indices reopen little changed with +0.2% for the Dow Jones and the S&P500, the Nasdaq gains even more than 0.3 %, after +12% in July)
The CAC is kept afloat by Renault or EssilorLuxottica (+4.5 and +3.5% respectively).
The Parisian index is resisting the contraction of the S&P Global PMI index, which reflects a sharp decline in the manufacturing sector in France. It fell from 51.4 in June to 49.5 in July, also signaling the first contraction in the sector since November 2020.
Apart from the sustained declines during the pandemic, this decline was also the sharpest since April 2013. Respondents explain it by a slowdown in activity at their customers, shortages of raw materials and weakening demand.
The trend is identical in the euro zone where the final PMI index for the manufacturing industry compiled by the teams of S&P Global slipped to 49.8 in July against 52.1 in June, also signaling the first contraction in the sector since a little over two years.
In Germany, consumption plunged vertically, by -8.8%, with unprecedented brutality since April 2020.
In the afternoon, the markets took notice of the S&P Global PMI index, which fell to 52.2 from 52.7 in June, falling to a two-year low.
Investigators point out that manufacturing output contracted with weakening demand conditions, while new orders saw their biggest decline in more than two years.
As for the ‘ISM’ index of purchasing managers in the manufacturing sector, it fell slightly to 52.8 against 53 in June.
It sounds trivial, but the overall new orders sub-index fell to 48 from 49.2 in June, while the one measuring production fell 1.4 points from 54.9 to 53.5. .
The employment component remained below the 50-point threshold, at 49.9, a figure that raises fears of downsizing in the industrial sector.
Construction spending also fell by -1.1% in June, confirming a sharp reversal in the cycle since the peak in May, house prices would also be down -3% in the ‘nine’ in July .
In the United States, the results season is almost coming to an end, since more than half of the components of the S&P 500 index have now unveiled their quarterly accounts.
On the Old Continent, several heavyweights including bp, BMW and Bayer have yet to publish their performance over the coming days.
Regarding currencies, the euro lost a little ground this morning, trading around 1.0220 dollars.
On the bond market, yields continue to ease with -3 to 4pts on our OATs and Bunds at 1.346% and 0.784% respectively. 10-year US government bonds are also down -3pts to 2.65%.
Oil prices are accelerating their decline after the ISM and PMI: -4.4% on the WTI towards $93.8 in New York, Brent (-3.5%) falls back to contact with $100 in London, still affected by the pessimism of operators on demand due to the sharp slowdown in the economy.
In the news of values, Renault flies away by +4.5% while the American broker Jefferies maintains its buy recommendation on the title: it points out that the automotive group exceeded by more than 50% the expectations of the market in the first half, while raising its targets so that they too appear 50% higher than the consensus.
“There is still a long way to go, but we continue to see encouraging signs that Renault is able to neutralize the current cycle by generating good results.”
Ipsen and Marengo Therapeutics announce a strategic partnership to develop two precision immuno-oncology drug candidates in the clinical phase using Marengo’s STAR platform.
Saint-Gobain indicates that on July 29 it finalized the acquisition, announced on May 31, of Kaycan, a company that produces and distributes outdoor building materials in Canada and the United States.
Finally, Vinci Airports indicates that it has signed the acquisition of 29.99% of OMA, an operation allowing it to enrich its portfolio of 13 airports located in northern and central Mexico, which welcomed 23 million passengers in 2019 (18 million in 2021).
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
