CAC40: not recovering despite OAT rate down sharply


(CercleFinance.com) – The Paris stock exchange limits its decline to just under 1% (-0.9%) and the CAC40 has been oscillating since 2:30 p.m. between 6,030 and 6,040 Pts, in volumes that are still just as anemic (1.5 billion euros) .
It is doing better than the DAX40 which fell -1.6% or the E-Stoxx50 which still dropped more than 1.1% (because of the Frankfurt stock exchange).

The indices got heavier after the publication of the 2nd – and last – revision of US GDP: the disappointment is not as great as with the consumer confidence figures on Tuesday at 4 p.m. but it is certain that it will not bring of relief on Wall Street.

The US indices also remain flat after 90 minutes of trading with the Dow Jones at +0.3% and the Nasdaq at -0.4% (11,150) and the S&P500 unchanged at 3,821

The figures published at 2:30 p.m. come out a little worse than expected: GDP down -1.6% (against -1.5%), and the ‘PCE’ price index (shopping basket), perhaps to be the most crucial piece of data – degrades to 7.1% from 7% initially

The other ‘figure of the day’ was the first estimate of inflation in Germany for the month of June, which came out at 8.2% against 8.7% in May.
It was a good surprise but it is overshadowed by the American ‘PCE’.
On the bond front, the good German figures are welcomed by an easing of -10.5pts of the OAT towards 2.065% and of -12pts on the Bund at 1.5190%.

Across the Atlantic, US T-Bonds erase -3.5 Pts towards 3.1720% despite a ‘WTI’ which climbs +1.5% towards $113.5 on the NYMEX, the ‘Brent’ takes +1.6 % at $119.8.

Investors should also be cautious before an intervention by Jerome Powell, the president of the American Federal Reserve, during the forum organized by the ECB in Sintra (Portugal).
Loretta Mester, voting member of the FED declared on Wednesday that she was in favor of a hike of +75Pts ‘if inflation persists’ (and it will be the case, barring a miracle in June… nobody believes in it with a barrel rising towards $120 in London and $114 on the NYMEX).

In a note published in the morning, the strategists evoke ‘an accumulation of bad news which cools the appetite for risk’.

In company news, real estate companies are having a difficult session with -7% on Icade, -6.2% on Covivio, -5.5% on Klépierre.

Atos (-2.5%) won a €1.2 million contract from the NATO Communications and Information Agency to install and configure business-critical cybersecurity systems of the organization, on 22 sites.

Eurazeo announces the sale of its remaining 51% stake in Trader Interactive, a marketplace company and supplier of services to dealers for leisure vehicles and professional equipment in the United States.

Ipsen reports that the US FDA has granted priority review to the application for approval of the investigational drug palovarotene for the treatment of patients with fibrodysplasia ossificans progressiva (FOP), an ultra-rare genetic disease.

Finally, TF1 indicates that it has signed an agreement for the sale of Unify’s Publishers activities to the Reworld Media group, an operation which would bring Reworld Media’s audience to more than 36 million unique monthly visitors according to Médiamétrie.

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