(CercleFinance.com) – A corrective episode is confirmed with a CAC40 which fell by more than 2%.2% towards 7,230 (its heaviest fall since March 15) via a breakout gap below 7,378 Pts.
The losses are reduced a little (-1.8%) but the index remains far from its recent support of 7,340Pts.
The CAC40 ‘GR’ index lost -750Pts on its peaks of May 19 (the ‘3 witches’ session with a peak at 22,340Pts) in volumes which are expanding a little but are far from reflecting strong selling pressure.
Luxury stocks continue to suffer releases but no sector is spared: the automobile is particularly ‘heavy’ on Wednesday.
The -2% of the CAC40 contrasts with the moderate decline of Wall Street (-0.75% for the Dow Jones to -0.9% for the ‘S&P’ and the Nasdaq).
‘The debt ceiling debate continues to show signs of trouble. Both Joe Biden and Kevin McCarthy were optimistic about a final solution, but the stalemate drove the market down,” Wells Fargo points out.
In addition to fears about the US debt ceiling, investors did not appreciate Tuesday the composite PMI indices published during the session, that of France having thus fallen by one point to 51.4 for the current month. .
No macroeconomic data is scheduled today in France, but during the morning, we learned of inflation figures in the United Kingdom for the last month and the Ifo index in Germany.
The latter reflects a clear cooling of the business climate in Germany, it fell by -1.7pt to 91.7 points in May (against 93.4 points in April), its first drop after six consecutive monthly increases.
‘This development was driven by much more pessimistic expectations. However, companies were also somewhat less satisfied with their current operations. The German economy is skeptical about the summer, ”says the research institute.
‘The Ifo drop appears consistent with a 0.8% contraction in German GDP quarter-on-quarter, with the Current Conditions Index also pointing to a sharp decline in output,’ Capital notes. Economics.
The UK’s Consumer Price Index (CPI) rose 8.7% in the 12 months to April 2023, a sharply lower annual rate from 10, 1% observed in March, according to the national statistics office.
But the crisis continues on the British bond market with Gilts still climbing by +15Pts towards 4.29%, at parity with Italian BTPs (4.285% against 4.32100% the day before while the 2 instruments posted a difference of 100Pts 1 month ago).
Such levels had not been observed since the beginning of October 2022 and the intervention of the Bank of England.
On the other hand, the relaxation is there on the Bunds and our OATs with -1.5 Pts at 3.026% and 2.450% respectively.
In the United States, T-Bonds remained stable at 3.7020%.
In the news of the values, Renault and Valeo announced Tuesday evening the conclusion of a partnership relating to the development of the electrical and electronic architecture of the next generations of vehicles of the manufacturer with the diamond.
Publicis announced the acquisition of Publicis Sapient AI Labs, an artificial intelligence (AI) research and development joint venture launched in 2020 in partnership between Publicis Sapient, Elder Research and Tquila.
Michelin said this morning that TBC, a US-based tire distributor it operates jointly with Sumitomo, has reached an agreement to sell its portfolio of retail stores to Mavis Tire Express Service.
Societe Generale announces the establishment of its new management team led by its CEO Slawomir Krupa, comprising two Deputy CEOs, Philippe Aymerich and Pierre Palmieri, as well as a newly created Executive Committee.
TotalEnergies announces that it has taken a 20% stake in the capital of Ductor, a Finnish start-up that has developed an innovative technology to treat organic waste with a high nitrogen content, such as poultry manure.
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