(CercleFinance.com) – The Paris Stock Exchange halves its losses, from -1.2% to -0.6% (around 6,510): the CAC however falls below 6,510 points, the day after a Whit Monday which had seen the Parisian index reap almost 1% totally against the trend of the bond market, in anecdotal trading volumes.
This little activity had been put down to a half-holiday (Pentecost) but the surprise is that this Tuesday when all of Europe got back to work, the billion figure mark he case was painfully affected when Wall Street reopened (after 6.5 hours of trading) and trade did not exceed 1.4 billion euros 45 minutes from closing.
The US indices have just reversed the value upwards after an initial decline of -0.7% for the Dow Jones and the S&P500, -1% for the Nasdaq.
The Dow Jones is now up +0.2%, the S&P500 +0.4% and the Nasdaq is only losing 0.4%.
The yield on 10-year US Treasury bonds, whose rapid rise had favored the stock market correction in the spring, is flirting with 3% but is down -6ts compared to the previous day, at 2.978%.
In Europe, the yield of the ten-year German Bund, considered the benchmark for borrowing in the euro zone, fell on Tuesday by -4.5 Pts to 1.2830% (after a ‘peak’ at 1.33% the day before).
Our OATs also eased by -4.5Pts towards 1.800%, in the wake of US T-Bonds which posted -6Pts towards 2.978%
Note this lowering of the estimate of global growth from 4.1% to 2.9% over the whole of 2022 by the World Bank.
Our OATs eased a little, with -4.5 Pts towards 1.8020%, in the wake of US T-Bonds.
Faced with the surge in inflation, investors seem to be increasingly pricing in the scenario of an end to the quantitative easing (QE) program and a first rate hike of 25 basis points in July, followed by a a second rise of 25 points in September.
Thursday will provide more information, thanks to the conclusions of the meeting of its board of governors.
In terms of statistics, the trade deficit of the United States fell sharply to 87.1 billion dollars in April, compared to that of 107.7 billion the previous month (which was revised from an estimate initial $109.8 billion), according to the Commerce Department.
This sharp contraction of 19.1% month-on-month reflects both a 3.4% decline in imports of goods and services, to $339.7 billion, and roughly symmetrical growth ( +3.5%) of exports, to 252.6 billion.
Investors learned this morning of a 2.7% decline in German industrial orders in April compared to the previous month, the third consecutive month of sequential decline, according to Commerzbank.
In addition, the expansion of the UK’s private sector slowed sharply in May, according to the composite PMI index of overall activity which came out at 53.1, compared to 58.2 for the previous month. and thus reached its lowest level since March 2021.
The foreign exchange market is relatively calm with the Dollar gaining 0.15% against the Euro towards 1.0680.
In the news of French companies, Capgemini announces that it has acquired Rufus Leonard, a design and brand experience agency based in London, whose expertise will strengthen its ‘customer first’ service offer in the United Kingdom. The transaction was finalized on June 1.
Atos announces that it wants to deepen its partnership with IBM in order to strengthen their common offer in financial services. The two partners say they want to help financial services firms achieve ‘optimum’ security of their data and systems with the ‘EU Trusted Third Party Cybersecurity Monitoring’ service to be provided by Atos.
Casino fell by -6% while the 3 takeover offers from the GreenYellow subsidiary were not as favorable and generous as expected.
Finally, Sanofi announces the launch of ‘Action 2022’, its global employee shareholding plan open to 86,000 employees in 59 countries, to ‘associate all employees, in all its geographical territories, with the future development and results of the company. ‘.
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