(CercleFinance.com) – The Paris Stock Exchange continues to weigh down (-0.35%) in almost non-existent volumes (660MnsE traded in 8 hours of trading).
The CAC, which peaked at 7,359 around 9:45 a.m. this morning, is now sinking below 7,275, a slow slide of 0.9% without any intermediate rebound.
The Euro-Stoxx50 has also tipped into the red (-0.2%) and it will be difficult for it to come out of it by 5:35 p.m.
While Wall Street will remain closed today for ‘Labor Day’, investors seem to be getting back in touch with reality, ie the ‘wall of worries’ of the moment, such as the slowdown in growth, the persistence of inflation or changes in monetary policies.
In France, electricity prices are skyrocketing and are putting a heavy strain on French people’s purchasing power… and at the same time, Norway distributes electricity free of charge in the country’s largest cities, with hydroelectric dams supplying more power that the country can consume.
In Paris, the crossing of the resistance of 7360 – which stopped the rebound of the CAC – appears to be the main issue in the short term.
The passage of this technical pivot (which has been at work since March 6) could pave the way for a return to its annual highs in April.
“The deceleration in the US labor market, however, could be a key catalyst for higher equities and lower bond yields by the end of the year,” said Mona Mahajan, strategist at Edward Jones.
“It would indeed mean that the Fed could finally stand aside by pausing on rates”, continues the analyst.
For the time being, investors should lack direction, especially since the week will be light on indicators.
The figures for industrial orders in the United States tomorrow, then the ISM for services on Wednesday, will however be followed by investors in search of concrete elements on the health of the economy.
The mid-week publication of industrial orders and then industrial production in Germany should confirm that Europe’s largest economy, the continent’s traditional engine, is showing worrying signs of weakness.
Germany has just revealed this morning a further decline in its exports in July (from 18.7 billion euros to 15.9 billion euros, or almost -10%), confirming the negative trend in the middle of the 3rd quarter.
In the meantime, bond markets continue to deteriorate in Europe with +3 basis points on OATs and Bunds (3.103% and 2.578% respectively), Italian BTPs add +5.5 points to 4.2900%.
Outside the Euro zone, the ‘Gilts’ are still at the bottom with +7pts at 4.5020%.
On the foreign exchange front, the Euro weakened by -0.55% towards $1.0785 in a trough market.
In the news of French companies, Technip Energies announces the launch, on the occasion of the Gastech 2023 conference to be held from September 5 to 8 in Singapore, of SnapLNG by T.EN, a modular, pre-studied and standardized solution for the production of low-carbon LNG (liquefied natural gas).
Unibail-Rodamco-Westfield (URW) announces that it has sold Westfield Valencia Town Center, a regional shopping center located in Santa Clarita, California, to Centennial Real Estate for a total value of $199 million (100%, URW share of 50 %).
Finally, Stmicroelectronics announced on Monday a collaboration with Sindcon, a Singaporean specialist in the Internet of Things (IoT), in the field of smart meters.
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