(CercleFinance.com) – The Paris stock market ends the session with a gain of +0.55%, to 5794 points, completely reversing the trend after a bad start to October and an initial decline of -1.6% around 5655 points.
The trend is identical on the other stock markets, Frankfurt arrogates nearly 0.8%, ahead of London (+0.2%) while the E-Stoxx50 index gains 0.7%.
Across the Atlantic, Wall Street quickly doubled the bet after opening up +1%, the Dow Jones (+2.3%) recrossed 29,000 (to 29,350), the S&P500 climbed +2.1%, the Nasdaq of +1.6%.
This morning, however, investors learned of the S&P Global PMI index for the manufacturing industry in the euro zone. This fell from 49.6 in August to 48.4, signaling a further deterioration in the economy in September, with the contraction reaching its strongest pace since June 2020.
In France, the PMI fell sharply from 50.6 to 47.7.
Investors hope to reassure themselves with other data such as producer prices and retail sales in the euro zone.
In the United States, the ISM came out down at 50.2 against 52 expected (after 52.8 in August) but the manufacturing PMI came out at 52 against 51.8 estimated (after 51.5 in August) and thus remains in expansion zone: very difficult to draw conclusions from such contradictory figures that are supposed to bear witness to the same reality.
US operators should pay close attention to the ADP firm’s survey on private employment published on Wednesday, and especially to the Department of Labor’s monthly employment report, scheduled for next Friday.
‘Significantly weaker US data seems to be the only thing that could make the FOMC change its position,’ Capital Economics said last Friday, adding, however, that it forecast ‘relatively strong’ data for September.
On the bond markets, an upturn is emerging after the worst month in 50 years and an unprecedented destruction of bond value in the 21st century.
The Bunds eased by -20Pts towards 1.911, the OATs by -21Pts towards 2.502% and the Italian BTPs by -25Pts towards 4.25%: this counter to the drop in yields could do a lot of good for European stock markets if it lasts another 2 or 3 days.
T-Bonds have eased sharply since 3:45 p.m. (ISM down?), by -20Pts to 3.604% and British Gilts by only -15Pts to 3.945% after Liz Truss gave up on the plan to remove the highest tranche of income tax, taxable up to 45%.
Note the oil rebound of +1% towards $88.6 in London while OPEC, which meets in Vienna on Wednesday, plans to reduce its production by 1 million barrels/day (faced with the risk of a drop in demand against a background generalized recessions).
In securities news, Kering Eyewear today announces that it holds more than 90% of the capital of the iconic American eyewear manufacturer Maui Jim, according to the terms announced on March 14 and after having obtained the approval of the competition authorities.
Societe Generale has announced that its Board of Directors has decided to propose Slawomir Krupa as a director to replace Frédéric Oudéa during the General Meeting of May 2023, then his appointment as Chief Executive Officer.
Worldline announces the finalization of the sale of its Terminals, Solutions & Services (TSS) business line to the Apollo funds, as announced on February 21. From now on, the independent company will operate exclusively under the Ingenico name.
Technip Energies says it has won a ‘large contract’ (between 250 and 500 million euros) to supply proprietary equipment for INEOS Olefins Belgium’s 1450 kilotonnes per year ethane cracker in Antwerp, Belgium.
Finally, Vinci announces that it has signed two major contracts for high-voltage lines in Brazil, namely a PPP (public-private partnership) contract and a design-build contract, projects which contribute to developing the local activity of its subsidiary Cobra IS.
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