(CercleFinance.com) – The session which ends in 1 hour could end in the green: the CAC40 has come a long way since it lost -0.9% (to 6,050) around 3:30 p.m., a drop quite comparable to that of the Euro-Stoxx50 (-0.9% to 3,470) which rose to -0.2% towards 3,495.
Wall Street also reversed steam after posting a slightly negative opening (losses ranging between 0.1% and 0.2%): the US indices which are now gaining 0.6% on average, which erases the losses suffered Tuesday evening.
Fears about US growth are materializing in the form of a retrograde fall of 4% to $89.9 in London (lower level before February 24).
This is a sign that specialists are taking the risk of recession seriously (the rebound made on Monday following the decision by OPEC+ to cut production fizzled).
The corrective movement is interrupted on the bond market, perhaps under the effect of a ‘risk off’: our OATs relax from -6.5Pts towards 2.135%, the Bunds from -4.5Basis Pts towards 1 .5600%, Italian BTPs fell -9Pts to 3.865%… and US T-Bonds erased -5Pts to 3.2900%.
The ECB will announce its monetary policy decisions tomorrow before its president, Christine Lagarde, will answer questions from journalists during a press conference which will be particularly well attended.
After cutting interest rates to 0% at its July meeting, the European Central Bank is expected to raise key rates by at least another 50 basis points tomorrow (more than 50% are betting on a 75Pts tightening basis) and communicate that further interest rate hikes will be needed.
‘Over the coming weeks, the expected rate hikes from the Fed and the ECB may continue to put some pressure on equity markets while economic indicators are expected to continue to deteriorate on the back of rising oil prices. energy’, warns Gilles Guibout, head of European equities at AXA IM.
‘Thus, even if valuations are below long-term averages in Europe and therefore at more attractive levels, it is probably too early to come back aggressively given the probable downside revisions to come in the outlook for results, in particular for companies. exposed to consumer spending,” he continues.
In terms of figures, the US trade deficit fell to -70.6 billion dollars in July, compared to -80.9 billion the previous month (which was revised from an initial estimate of 79.6 billion ), according to the Department of Commerce.
This 12.6% month-on-month decline, in line with market expectations, reflects both a slight 0.2% growth in exports of goods and services, to 259.3 billion dollars, but above all a 2.9% contraction in imports, to 329.9 billion.
China announced this morning a 7.1% increase in its exports, a figure below expectations.
The decline of the Nikkei and other Asian markets, which continued to lose ground during today’s session, is contributing to the decline in indices in Europe and the United States.
The euro recovered by +0.4% (towards 0.9945) after falling back below the 0.99 threshold against the dollar (at 0.9895).
On company news, oil and oil services stocks fell sharply in the wake of the barrel, Total Energies fell by -3.5%, Vallourec by -4.4%.
Airbus announced on Wednesday that it has entered into a partnership with Japanese helicopter operator Hiratagakuen to study the feasibility of launching a transport service based on CityAirbus NextGen, its flying taxi project.
Ubisoft (-15%) announces the acquisition of a minority stake by Tencent in the capital of Guillemot Brothers Limited and its entry into the concert of the founders of the Company.
Tencent’s investment in Guillemot Brothers Limited amounts to 300 ME (200 ME of acquisition of securities and 100 ME of capital increase), showing a value by transparency of Ubisoft at 80E per share.
The Neoen share posted a sharp drop in the SBF 120 following the launch of an issue of green Océanes maturing in 2027 for a nominal amount of 300 million euros.
The net proceeds of the issue – carried out by way of placement with qualified investors only – must be allocated to the financing or refinancing of renewable energy production or storage projects.
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