(CercleFinance.com) – The Paris Stock Exchange rebounded (+0.5% to 6,392) ending three consecutive sessions of decline (and -3% cumulative), in a context marked by growing questions about the health of the world economy and the evolution of inflation.
The CAC40 benefits from the rise in the US indices (+0.4% for the Dow Jones and +0.8% for the Nasdaq) but it fails to return to the threshold of 6,410 points, the main base and below the average short-term mobile.
‘This reversal makes the uptrend wobble, a dynamic doubly cut by the speed of the movement and by the accumulation of anxiety-provoking announcements’, worry the Kiplink teams.
While the bond sector should benefit from a ‘risk-off’ context, yields sharply tightened and soared by +8.5 Pts on our OATs (around 2.003%), by +6.5 Pts on Bunds (around 1.383%) and +11Pts on Italian BTPs (3.745%), a tension which will not fail to be linked to the spectacular surge in the Megawatt/h which passes the 650E mark on the EPEX (our futures market for electricity open to industry).
The ‘digits of the day’ in the United States confirm the economic slowdown: sales of existing homes fell by -1%, durable goods orders stagnated in the United States last month, after rebounding 2.2% in June (revised from an initial estimate of 1.9%), according to the Commerce Department (consensus expected a modest rise).
Excluding the transport sector, considered volatile and which fell 0.7% this time around, orders for American durable goods rose by 0.3% in July.
Fears of a more marked than expected tightening of monetary policy, two days before a much-awaited speech by the President of the Federal Reserve, have raised concerns among investors.
The stock market indices therefore risk taking a complicated path pending the Jackson Hole symposium, which will bring together the main central bankers of the planet from tomorrow.
The summer rally initiated by global stock markets has so far been based on an easing of inflation expectations, and therefore on the hope that the Fed will slow the pace of its rate hikes.
Problem, market participants now expect the Fed boss to be rather ‘hawkish’ on Friday, insisting on the need to raise interest rates in order to calm inflation.
Added to this are growing fears about the health of the economy.
‘The risks to growth continue to increase’, say analysts at Generali Investments.
‘A moderate recession in the second half is now our base scenario for the euro zone’, points out the Italian insurer.
On the foreign exchange market, the euro fell back close to the 20-year low of $0.9900 (0.9920): it was weakened yesterday by the poor economic figures published in Europe.
In securities news, TotalEnergies indicates that the Bonaparte CCS Assessment partnership, in which it holds 26% of the shares alongside INPEX (53%, operator) and Woodside (21%), has been awarded a permit to assessment of CO2 storage off the northwest coast of Australia.
OVH continues its debacle and registers a new historic low around 13.1E.
Riber, specialist in Molecular Beam Epitaxy (MBE), announces an order for an MBE 49 production system by a new Asian customer who will use this machine, to be delivered in 2023, for the production of radio frequency circuits and micro- waves.
Finally, Bio-UV Group announces a new order for the supply of a BIO-SEA low-flow ballast water treatment system, as part of a retrofit project on board the expedition vessel Quest on behalf of Cruise Management International.
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