(CercleFinance.com) – Scores have been frozen in Paris at around -1.2% since the end of the morning: the CAC40 ends a series of 6 consecutive upward sessions and drops -1.2% towards 7,290 points, in small volumes (about 1MdE at 35Mn from the closing).
The CAC is notably penalized by the decline in luxury stocks such as LVMH and Hermès (-3.5%) or even Kering and L’Oréal (-2%)… while the Swiss group Richemont falls by -10% to Zurich (around 138.5ChF).
The luxury sector, structurally very dependent on the Chinese market, was penalized this morning by the publication of disappointing statistics from Beijing, showing slower growth in the 2nd quarter, with only +0.8% compared to the 1st quarter.
The news is also marked by the opening of the earnings season on Wall Street where 60 companies in the S&P 500 index, including five components of the Dow Jones, will publish their accounts by Friday.
For now, Wall Street is starting the week flat, with +0.15% to +0.2% for the S&P500 and the Dow Jones.
Among the heavyweights due to announce their quarterly performance this week are – among others – Morgan Stanley, Goldman Sachs, Tesla, Netflix and Johnson & Johnson.
The ramping up of the earnings season will also be a major focus in Europe, where technology groups such as ASML and Nokia will also present their earnings and forecasts.
On the other hand, the week that opens today promises to be a little less loaded with leading macroeconomic indicators.
Note all the same this Monday the new decline of the index ‘Empire State’
in the New York area’s manufacturing sector: it slowed markedly this month to +1.1 from +6.6 in June, but it is ‘less worse’ than the consensus forecast was waiting on negative ground.
The New York Fed says new orders and shipments from manufacturing companies have increased, while delivery times have shortened and inventories have continued to decline.
Employment levels rose slightly, increases in input and selling prices continued to slow. While companies expect conditions to improve, their optimism has remained muted.
On the data front, the week will be mainly dominated by tomorrow’s release of US retail sales, which will help determine whether the recent strength in US consumption has continued into June.
Calm start to the week also on bonds with -1.7Pt base on our OATs at 3.018%, -2Pts on Bunds at 2.455% but no variation on Italian BTPs at 4.175% and +1Pt symbolic base on US T-Bonds at 3.8300%.
The FOREX also seems to be dozing with an E/$ unchanged at 1.1220, the Dollar-Index crumbles by -0.05% to 99.85.
In the news of French companies, Alstom announces that it has signed a framework contract with rental company Akiem for a total amount of 500 million euros and relating to 100 Traxx Universal multi-system (MS3) locomotives, including a section farm of 65 locomotives.
Danone announces a decree from the Russian authorities which aims to place Danone Russia under temporary external administration by the Russian authorities, a decision which however has no impact on its financial objectives for the year 2023.
Finally, Dassault Aviation confirmed on Friday evening the selection of its Rafale Marine by the Indian Government to equip the Indian Navy with a latest-generation fighter, following a conclusive test campaign held in India.
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
