CAC40: slightly down, wind of concern around Gabon

( – After oscillating several times between green (with a peak at 7,405 points) and red (with a floor at 7,320 points), the Paris stock market finally ended the session with a limited decline of 0, 12%, to 7364 points, in reduced volumes with just 2 billion euros traded since the opening.

After Ukraine and then Niger, international crises are once again making their way into the financial news with a military coup in Gabon, where Eramet operates the world’s first manganese mine (a mineral that constitutes the essential part of his income).

In this context, the Eramet share fell by 16.5% to 63.6 euros E (after -21% this morning for a floor of 59.75E), after having suspended all its operations in the country in order to be able to ensure the safety of its personnel.

For its part, Maurel & Prom, an oil company specializing in the extraction of oil and natural gas, which is very present in Gabon, lost 14.8% (against -23% this morning).

On the statistics front, the day turned out to be dense and the most anticipated figures were published at the beginning of the afternoon.

We thus learned that the private sector of the United States had generated only 177,000 new jobs in August, a figure down significantly from the previous month, according to the monthly survey published by ADP, which explains that this strong contraction by a fall in job creations in the hotel and catering industry to only 30,000, after strong hiring in this sector in the previous months.

The second most striking figure is that of US real GDP for the second quarter of 2023: it stands at 2.1% at an annualized rate, according to a second estimate from the Commerce Department, which had announced it at 2.4 % in very first reading.

The acceleration in growth, compared to a rate of 2% observed in the first quarter, is thus weaker than initially estimated, even though Jefferies was on the contrary expecting an upward revision to 2.6% for the second quarter. .

In addition, the rise in the PCE price index (still at an annual rate) for the second quarter has been revised down by 0.1 point, to +2.5% in raw data and to +3.7% in raw data. ‘core’ (excluding food and energy prices).

Investors also took note this morning of inflation figures in Spain. It picked up a little more sharply than expected, to 2.6% in August against 3.3% in July, due to the rise in fuel prices, preliminary official figures show.
The first estimate of inflation in Germany for the month of August (6.1%) confirmed the consensus which was counting on a decline of only -0.1% to 6.4% over one year after +6.5 % in July.

Inflation figures for the Eurozone are due tomorrow. Estimates are counting on an increase of 5.1% in August, after +5.3% in July.

The highlight of the week will remain the August employment statistics in the United States, which will be published on Friday, as well as their possible implications for the monetary policy of the Fed.

Well oriented this morning, the bond compartment is deteriorating over the hours in Europe and our OATs now show +4Pts at 3.074%, the Bunds +4.7Pts at 2.557%.
Across the Atlantic, the yield on 10-year US government bonds fell -1pt (to 4.115%), a modest decline after -11pt the day before), a low of almost a month.

The ADP figures then the US GDP clearly weaken the Dollar which fell by -0.5% against the Euro, towards 1.0930$/E.

In the news of French companies, in addition to the notable declines of Eramet and Maurel & Prom (see above), note that Kering has announced that it has carried out a bond issue for a total amount of 3.8 billion euros, divided into four tranches, with maturities ranging from two to 12 years and with coupons ranging from 3.75% to 3.875%.

Waga Energy announces that it has obtained a long-term, non-recourse bank loan of 6.6 million euros from Bpifrance to finance its biomethane production unit started on June 20 near Barcelona.

London Gatwick Airport, a 50.01% subsidiary of Vinci Airports, recorded a net profit of 79.1 million pounds sterling (M£) in the 1st half, up 56% compared to the same period a year earlier. For its part, the number of passengers over the period rose sharply (+41%), to 18.5 million.

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