(CercleFinance.com) – A lot of nervousness on the Paris Stock Exchange which has just lost and then regained 1% in less than an hour (just after the reopening of Wall Street)3
The CAC40 (+0.8%) appears able to preserve the 5,800 (early March low) on Tuesday but remains in contact with its annual lows, with a vulnerability that could resurface at any moment.
The Euro-Stoxx50 also rose by 0.5% at 3,360, encouraged by a rebound of +1% in the Dow Jones, +1.2% on the S&P500, the Nasdaq recovering by +1.7% towards 11,000.
September is traditionally a bad month for the stock market and the course of the last few days has done nothing to contradict this bleak observation.
Volatility suddenly returned yesterday on the foreign exchange market as on the bond compartment and many investors think that this fit of fever could last for a few days.
With the outlook still looking just as risky, both in terms of monetary policies and the economic situation, strategists rule out that this ongoing downturn is over.
For the teams of La Financière de l’Echiquier, investors today find themselves in a posture of generalized aversion to risk which logically makes the financial markets rock.
‘Why buy shares today if corporate results are potentially becoming weighed down by GDP growth?’, asks the asset manager.
‘Why lend to states today if public debt continues to grow and the rates offered tomorrow are more attractive?’, continues the brokerage firm.
“Faced with all these questions, investors seem very cautious for the moment,” concludes LFDE.
In the immediate future, investors will remain focused on economic indicators with the aim of getting a more precise idea of the situation.
The day will be marked by the figures for durable goods orders and home sales in the United States.
Durable goods orders fell a little less than expected (-0.2%) in August, official statistics from the Commerce Department show (economists on average had forecast a drop of 0.3%).
Orders for durable goods excluding aeronautics, a closely followed barometer of business investment projects, rose by 0.2%. Excluding the defense sector, the statistic shows a decline of 0.9%.
On the real estate side, home sales rebounded strongly, from 28.8% of new home sales in the United States in August, representing an annualized CVS volume of 685,000.
At the same time, the ‘S&P Case Shiller’ index shows a fall in prices for the third consecutive month in the 20 largest American cities with an increase reduced to 16.1% over one year in July after +18.7% in June. (revised from +18.6%), the consensus was counting on +17%.
Investors will be able to immerse themselves in other statistics by the end of the week, culminating in the publication on Friday of the ‘core PCE’ index in the United States, the measure of inflation favored by the Federal Reserve.
If ever this indicator were to show a sharper than expected slowdown, it could stem the decline in equity markets by reinforcing the hypothesis of a soft landing for the economy – that is, a slowdown. growth without a period of decline.
An exercise which, according to the managers of La Financière de l’Echiquier, is more like a night landing in the middle of a storm than a daytime pose in clear weather.
“The volatility on the financial markets is likely to last a few more months, the time that investors have in mind the stopping point of the central bankers, and above all an idea of the extent of the economic slowdown”, thus warns LFDE .
The tension on the bond markets had calmed down this morning but it is back in force this evening: after a surge of +20Pts the day before to around 3.90%, the T-Bonds add +5Pts to 2.93%
Our OATs deteriorate further by +10Pts to 2.805% and the Bunds (+12Pts) go from 2.09 to 2.21%… and it’s even worse for Italian BTPs which plunge with +23Pts to 4.74 %, a record since 2012.
The euro is recovering at the margin, by +0.15% towards 0.9625: it remains anchored below the former support of 0.97 in the summer of 2002.
On the stock side, EDF announces the sale of its stake in the CCGT Sloe power plant (870 MW) in the Netherlands. EDF owns and operates 50% of the plant, jointly with its partner Pzem. EDF today signed an agreement with EPH, producer and operator of the Czech electricity network, for the sale of the plant.
ArcelorMittal announced the issuance of a bond issue bearing interest at 4.875% maturing in 2026 for an amount of 600 million euros. In a press release published yesterday evening, the world’s largest steelmaker said that the proceeds of the issue will be allocated to financing the general needs of the company as well as refinancing the debt.
Dassault Systèmes announces that Asda, the third largest retailer in the United Kingdom, has chosen its solutions to transform its internal transport activities.
Asda will deploy the Industry Solution Experience ‘Perfect Logistics’ combined with DELMIA Quintiq applications and the 3DEXPERIENCE platform in the UK and Ireland to integrate and optimize the flow of goods between its suppliers, distribution centers and its stores.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
