(CercleFinance.com) – After signing a new absolute high shortly after the opening, at 8,229 points, the Paris Stock Exchange gave up part of its gains: at the final gong, the Parisian index nevertheless recorded an increase in the session by 0.22%, to 8179 points, helped by Teleperformance (+2.5%) and URW (+1.9%).
Investors welcome the announcements from the Federal Reserve, which confirmed yesterday that it still planned three rate cuts this year (compared to 7 to 8 expected at the end of 2023).
The Fed did not touch its rates, as expected, on Wednesday evening but its press release suggested that the slowdown in inflation – even irregular – could allow it to relax its monetary policy in the coming months.
Highly anticipated, its new interest rate projections, the ‘dot plots’, continue to show three rate cuts in 2024, followed by three new reductions in the cost of money in 2025.
Traders now assess the probability of an interest rate cut in June at nearly 72% compared to 60% before the Fed meeting according to the CME’s FedWatch barometer.
The session was punctuated by numerous statistics such as sales of old homes in the United States.
These increased by 9.5% between January and February to reach 4.38 million on an annualized rate and on a seasonally adjusted basis (CVS), according to the National Federation of Real Estate Agents (NAR).
The median sales price reached $384,500, up 5.7% year-on-year, and the stock of unsold existing homes increased 5.9% to reach 1.07 million at the end of February, or 2.9 months in current flow rate.
A little less dynamic growth in the American private sector in March despite the good shape of the manufacturing industry.
Furthermore, according to the latest PMI survey carried out by S&P Global among directors, the composite ‘flash’ index – which measures activity in services and industry – fell to 52.2 this month, compared to 52.5 last month.
In services, the PMI fell to 51.7, after 52.3 in February, but it recovered to 52.5 in the manufacturing sector, against 52.2 last month, to reach a record high almost two years.
The index of leading indicators in the United States, on the other hand, rebounded in February thanks in particular to the good health of the stock market, the employers’ organization Conference Board announced this Thursday.
This precursor index, supposed to foreshadow the general trend of the American economy for the months to come, recovered by 0.1% last month, after having suffered a decline of 0.4% in January (compared to -0.2 % expected).
Despite this positive surprise, the ConfBoard says it sees elements likely to weigh on growth, which the organization sees slowing in the second and then the third quarter due to the impact of high interest rates on consumer spending.
Nearly 24% of businesses reported an increase in overall activity this month, while 21% reported declines; 52% reported no change.
The new orders index turned positive again for the first time since October, going from -5.2 in February to 5.4 in March. The current shipments index rose 1 point to 11.4 in March, its highest level since August 2022.
Overall, businesses continued to report declining employment. The employment index increased by 1 point to -9.6 in March, the 11th negative figure in 13 months.
Like its American counterpart, the Bank of England has also opted for a ‘status quo’ at lunchtime, but the market anticipates the start of a change in its monetary policy during the second half of the year. .
The morning was especially lively in Europe with the publication of the latest PMI activity indicators in the euro zone: the HCOB composite PMI flash index of overall activity in the euro zone stood at 49.9 in March compared to 49. .2 in February, thus signaling a virtual stabilization of activity levels in March.
‘With the fall in energy prices and the prospect of a rate cut by the ECB in June, there is reason to expect an improvement in sentiment,’ predict economists at Oddo BHF.
On the bond market, American government bonds reacted very timidly to the Fed press release: after -1Pt the day before, the ’10 year’ rose by +1Pt towards 4.28%.
It is a little more positive in Europe with -2.5Pts on OATs at 2.85% and -3Pts on Bunds at 2.4050%.
The greenback fully regains the -0.6% lost the day before and rises towards $1.086 against the euro.
The Ounce of gold crossed $2,200 then settled towards $2,180, an increase of 0.9%.
In French company news, Korean Air has signed a contract with Airbus for the acquisition of 33 A350 family aircraft. The deal, which includes 27 A350-1000s and six A350-900s, is valued at $13.7 billion.
The Directorate General of Armaments (DGA) has received the two two-seater Rafale ‘B364’ and ‘B363’ at the Dassault Aviation site in Mérignac (Gironde), announces the Ministry of the Armed Forces.
Orpea rose 3% after +20% the day before, with investors welcoming the change of name of the retirement home operator to ’emeis’ presented as a ‘new stage in its history’.
Thales announces that it has signed a memorandum of understanding (MoU) with Skyguide to promote open architectures in air traffic management (ATM) systems, leveraging Thales’ OpenSky platform.
Orange has ensured that Totem, Orange’s TowerCo subsidiary, has started the deployment of 5G in the tunnels of the future line 15 South of the Grand Paris Express.
Copyright © 2024 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends using the buttons below.
