(CercleFinance.com) – The session ends on a note of weakness: the Paris Stock Exchange, which had almost erased its initial losses, returned to its lowest levels of the day (around 7,925).
The CAC40 is once again ricocheting below 7,950 and this could end up exhausting buyers.
The declines are increasing on Wall Street: -0.5% for the S&P500, -1.7% for the Nasdaq (which was expected at -1%).
The euro-Stoxx50 lost 0.5% to 4,888 after a series of absolute records and the DAX, which recorded 8 records in 9 sessions, stalled below its last zenith, the decline having started around 4:30 p.m.
This day was rich in ‘stats’ and the latest ones concern anticipated activity indices: the ISM for services returned to 52.6 last month, compared to 53.4 in January, as economists expected. around 53 according to the Institute for Supply Management.
The activity sub-index, which measures production, on the other hand improved to 57.2 after 55.8 in January, while that of new orders rose to 56.1 against 55 the previous month.
That of employment, on the other hand, was down, at 48 after 50.5, just like the ISM index of prices paid which fell to 58.6 against 64 in January.
The ‘global S&P PMI’ of the United States private sector (a ‘cousin’ of the ISM) is revised upwards in 2nd reading, to 52.5, instead of 51.4 in flash estimate, and after 52 the preceding month.
American private companies thus experienced their 13th consecutive month of expansion in activity, supported by a recovery in manufacturing production… a trend partly contradicted by a -3.6% drop in industrial production in the month of January in the United States.
In Europe, industrial producer prices fell by 0.9% in January in the Eurozone and in the EU according to Eurostat, after declines of 0.9% and 0.8% respectively in December 2023.
Compared to January 2023, industrial producer prices fell by 8.6% in the euro area and by 8.4% in the EU, declines at an annual rate slowing compared to those of respectively 10.7 % and 10% observed in December.
Still in the Eurozone, the HCOB composite PMI index rose from 47.9 in January to 49.2 in February, reaching its highest level in eight months and thus indicating that overall activity is approaching stabilization.
In France, the HCOB PMI composite index of overall activity reached its highest level in nine months, rising from 44.6 in January to 48.1 in February, highlighting signs of recovery in the French economy .
On the other hand, production in the manufacturing industry fell ‘sequentially’ (‑1.6% after +0.5% in December 2023) and in the industry as a whole (‑1.1% after +0 .4%), according to CVS-CJO data from INSEE.
The markets are now awaiting the two major meetings of the week: namely the meeting of the European Central Bank (ECB) on Thursday and the American employment report on Friday.
Investors will also continue to monitor political news in the United States with the crucial day known as ‘Super Tuesday’.
The victories of Joe Biden and Donald Trump are widely expected in their respective camps, which means that the two candidates should logically meet in the presidential election scheduled for November 5.
The bond markets improved sharply this Tuesday, with an easing of -910Pts on our OATs towards 2.87%, -8.5Pts on Bunds at 2.3150% and -8Pts also on US T-Bonds towards 4 .14%.
A relaxation perhaps to be compared to the surge in Gold which sets a new absolute record at $2,140 (before falling below $2,130 around 5 p.m.): Treasury bonds and precious metals are safe haven investments when uncertainties loom the horizon.
The Dollar, another ‘safe haven’, does not seem to illustrate this status: it remains almost stable around 1.0860E.
In French company news, Bolloré announces the payment, as of March 11, of the price supplement of 0.25 euros per Bolloré share sold as part of its simplified public purchase offer initiated on its own shares, OPAS closed on May 30.
Thales publishes for 2023 a net profit group share (RNPG) down 9% to 1.02 billion euros, due to an exceptional charge linked to pension commitments in the United Kingdom, but an adjusted RNPG up 14% to 1.77 billion.
Following discussions in recent weeks with the French State, Eramet has agreed to an agreement on the treatment of SLN’s existing debt, an agreement which will neutralize the weight of this debt in the group’s consolidated accounts.
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