(CercleFinance.com) – The Paris Stock Exchange (-0.4% towards 7,185) significantly reduces its losses at the close – in the wake of Wall Street – and will preserve the essential, namely the support of 7,150 (sinking to the margin at the start of the morning with a short-lived floor at 7.135).
The indices then recovered after the publication of the latest PMI indices (the reception was negative, the Euro fell towards 1.0615, then investors changed their minds) but the CAC suffered a heavy decline of -2.5 % this week.
As a result, the PMIs -rather mediocre- did not have much influence on the trend: the HCOB composite PMI of overall activity in France fell sharply in September in flash estimation, falling from 46 in August to 43.5, and thus signaling the largest contraction in the private sector since November 2020.
In the euro zone, the HCOB composite flash PMI index of overall activity stood at 47.1 in September after 46.7 the previous month, signaling a fourth consecutive monthly decline in private sector activity.
Wall Street reopened on an indecisive note before benefiting from buybacks on the eve of the weekend: the Dow Jones regained 0.1%, the S&P500 at +0.4%, the Nasdaq +0.8% after -1.85% the day before.
No particular movement on the Tokyo Stock Exchange despite the meeting of the BoJ (Bank of Japan): this ‘suspenseful’ session ends with a limited decline of 0.2% this Friday but aligns 4 sessions of decline out of 4 ( Monday was a holiday) for a weekly loss of -3.4%.
The Bank of Japan left its rates unchanged and maintained its ultra-accommodating monetary policy, denying speculation that there was a tightening to counteract the weakness of the Yen (which is sinking towards 148.4 against the $, and testing its lowest for 1 year (150/$).
On the bond side, we cannot speak of an improvement today since yields have symbolically relaxed from -1 to -1.5Pt and are stagnating near the worst levels of the year, at 2.735% for the Bund, 3.28 % for the OAT.
US T-Bonds lost 4 points to 4.445% and their yield remained above the previous ‘peak’ recorded at 4.36%.
Investors will approach the weekend with a new source of concern which lies in the evolution of the American yield curve, which sees the yield on ten-year Treasury bonds now moving to 4.50%… while Wall Street hoped that Jerome Powell would be able to find the words to trigger an easing towards 4%.
Some observers point out that this is the highest since October 2007, that is to say precisely the moment chosen by the S&P 500 to register a historic peak, a year before the Lehman Brothers crisis.
The price of a barrel is on an upward trend, but is nevertheless heading towards a drop of more than 1% over the week, mainly linked to concerns surrounding the slowdown in global demand.
Brent gained 1.2% to more than $94.3 per barrel and American light crude (West Texas Intermediate, WTI) gained 1% to around $90.6 after peaking this morning at $91.3 (it would have then ended the week unchanged)..
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends using the buttons below.
