CAC40: no trend, W-Street no more inspired (-0.2%)

( – The Paris Stock Exchange remains in slight decline (-0.2% to 7,200) in volumes that are still just as anemic (less than 1 billion euros in 6 hours and a half of quotations), the Euro-Stoxx50 fell by – 0.3%: we observe a virtual alignment with the US indices with a Dow Jones which reopened on a decline of -0.2%, the S&P500 fell by -0.3%.
Investors seem to want to put themselves in a waiting position waiting for the next element likely to push the market higher, or on the contrary lead to an episode of consolation.

Many strategists point out that the buoyant winds that have recently supported the indices are turning: interest rates are rising, inflation is struggling to ebb and the cost of capital is rising.

In addition, orders to manufacturing industry in Germany fell by -0.4% (against an anticipation of stability in April) according to the provisional results of Destatis.
Retail sales were unchanged in the euro zone in April from the previous month, data released by Eurostat on Tuesday showed. According to estimates from the Statistical Office of the European Union, retail trade volume rose 0.5% month-on-month for non-food products.

Laura Corrieras, equity portfolio manager at Indosuez Wealth Management believes that a “liquidity crisis could even threaten the markets, with a risk of destabilization as a result, not to mention the persistent uncertainties surrounding growth and keeping players in a state of alive’.

‘Furthermore, we are seeing a clear dissonance between the Fed, which is not considering any rate cuts, the resilience of equity markets and the expectations of bond markets – which are pricing in rate cuts as early as this year’

The yield of 10-year Treasuries deteriorated slightly, by +3pts to 3.723%, despite the prospect of a status quo from the Fed at the end of its meeting next week.

On the Old Continent, yields are stagnating: that of the 10-year Bund, the euro zone’s benchmark rate, tightened by half a basis point to 2.38%, with the same difference on our OATs at 2.929%.
In the energy market, benchmark crude contracts fell sharply (-2%) on profit taking after rebounding strongly yesterday in reaction to OPEC’s promise to cut production to support course.

Brent lost 2% to 75.3 dollars a barrel while American light crude (West Texas Intermediate, WTI) lost 1.6% to 71.2 dollars.

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