(CercleFinance.com) – The Paris stock market ends the day with a gain of 0.56%, to 7290 points, while the general feeling believes that the ‘CPI’ published at 2:30 p.m. is rather in line with the ‘pivot ‘ from the Fed this fall.
This ‘CPI’ – one of the most anticipated US ‘stats’ for a month – comes out perfectly in line with forecasts: consumer prices slowed to +4% annualized (+0.1% sequentially) and inflation ‘ core’ (excluding volatile items) slowed to 5.3%, as expected.
The CAC40 owes its positive score to the rise of Teleperformance (+3.8%), Saint Gobain (+3.1%) and Legrand (+2.1%).
This morning, investors became aware of the annual inflation rate in Germany.
This stood at +6.1% in May 2023, thus marking a further slowdown after rates of +7.2% in April and +7.4% in March.
Still on the statistical front, the ZEW indicator of economic sentiment in Germany comes out mixed: it rose slightly ‘overall’ in June to stand at -8.5 points, i.e. 2.2 points more than in May, but a more detailed reading shows that ‘the experts do not expect an improvement in the economic situation in the second half of the year’.
“Export-oriented sectors, in particular, are expected to perform rather poorly due to the weak global economy,” says ZEW Chairman Achim Wambach.
While the assessment of the outlook is picking up a little, the assessment of the current economic situation in Germany, on the other hand, is falling very sharply: the corresponding index has fallen by 21.7 points and currently stands at -56.5 points.
The markets which hoped that the daily figures would shed light on the choices of the Federal Reserve of the United States or the ECB remain unsatisfied… and the bond markets which had been rather well oriented since this morning are looking a little gray after having integrated the scenario of a ‘status quo’ on US rates and a 25pt increase in key ECB rates.
The yield on ten-year US Treasury bonds fell -9pts to 3.68% and is now +1pt to 3.68%.
The ten-year German Bund, which fell -3.5 Pts to 2.346%, completely reverses the trend with +4 Pts to 2.422% and OATs go back from -4 Pts to 2.872% to +3 Pts to 2.942%, Italian BTPs will end up unchanged at 4.052% against -6.5 Pts at 3.985%.
In French company news, Teleperformance announces the deployment of artificial intelligence (AI) tools on the ServiceNow cloud platform, leader in digital workflow management, to improve the employee experience, increase productivity and transform its operations.
Saint-Gobain announced that it has entered into a definitive agreement to acquire Building Products of Canada Corp. for 925 million euros.
Thales announces the signing of a binding memorandum of understanding for the acquisition of 100% of the Australian group Tesserent Ltd, at a price valuing its equity at 176 million Australian dollars, or approximately 107 million euros .
Finally, the European Commission has approved, under the EU Merger Regulation, the creation of a joint venture by Capgemini and Orange. The joint venture, Bleu, will provide sovereign cloud services that meet the criteria for the ‘Cloud de Confiance’ label in France, i.e. sovereign cloud services that meet specific security requirements set by the Agency. cybersecurity company, to a specific set of customers in France.
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