(CercleFinance.com) – The Paris Stock Exchange has been moving without a clear direction since this morning, oscillating between red and green in starving volumes, characteristic of August, with less than 900 ME traded since the opening.
After having fallen to 7270 pts in the morning, the Paris stock market had regained some color at the beginning of the afternoon around 7330 pts before falling now around 7300 pts (-0.1%). Teleperformance acts as the CAC’s red lantern with a decline of more than 2.5%.
This morning, investors became aware of a worrying statistic concerning Germany.
Thus, after a virtual stagnation (-0.1%) in May, German industrial production fell by 1.5% in June 2023 compared to the previous month, a contraction driven in particular by the automobile industry (-3, 5%).
“We expect German industrial production to decline further for the rest of the year as high interest rates and weakening demand weigh down,” Capital Economics warned.
This data comes at a time when the markets were already worried about the health of global growth, in a context of central bank rate hikes and the downgrading of the US debt rating by Fitch, the latter element having revived tensions on the bondholder.
In the United States, the sudden resurgence of nervousness on the side of long rates resulted in a rise in yields, making equities mechanically less attractive, particularly on the technology side.
Although it begins to ease slightly, the yield on ten-year US Treasury bonds, which is still closely watched, still remains above the symbolic 4% mark.
On the European market, the ten-year German bond is trading at a still very high level of 2.56%.
The next test is set for Thursday with the release of monthly US consumer price data, which may prove resilient given the recent upswing in energy prices.
In the news of French companies, Eutelsat Communications announces the signing of a partnership agreement with Space Tech Innovation Limited (STI), a subsidiary of Thaicom, for the operation of a new satellite to be located at orbital position 119, 5° East covering Asia.
Biocorp announces, following obtaining the usual regulatory authorizations, the completion of the off-market acquisition by Novo Nordisk of a total of 2,838,669 shares, i.e. 64.3% of the capital and 64.09% of the voting rights of the company, for a price of 35 euros per share.
Poujoulat announces a turnover for its first quarter (April to June) up 8.5% in annual comparison, to 75.7 million euros, ‘thereby exceeding expectations and demonstrating the solidity of its growth’, according to the group.
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