(CercleFinance.com) – After a lackluster morning that raised fears of a 4th consecutive session of decline, the Paris stock exchange was able to reverse the trend and finally end the day with a gain of 0.39% , at 6386 points.
Although moderate, this rebound has above all the merit of putting an end to 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 the inflation.
In Europe, the E-Stoxx50 gained 0.5%, ahead of Frankfurt (+0.3%) and London (-0.1%).
The CAC40 benefited from the rise in the US indices (+0.4% for the Dow Jones and +0.8% for the Nasdaq and +0.5% for the S&P500) without however managing to return to 6410 points, base main and lower part of the short-term moving average.
‘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%, orders for durable goods stagnated in the United States last month, after having rebounded by 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 this morning close to the 20-year low of $0.9900 (0.9920) but it rebounded towards 0.9980 (+0.1%) as the $ weakened by low numbers.
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.
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.
Finally, Schneider Electric on Wednesday expressed its intention to buy the entire capital of Aveva, a British publisher of engineering and industrial software in which it is already a 59.1% shareholder.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
