(CercleFinance.com) – The Paris Stock Exchange sees its lead frozen at around +0.2 to +0.3% (same score as this morning around 10 a.m.) around 7,340 points, still pulled by the Kering locomotive (+7%)… and helped by Wall Street which is lining up an 8th consecutive session of increases, which augurs well for a ‘3 witches’ session on Friday which would devote a 5th consecutive month of increase (and a 7th for the Nasd aq, counting a horizontal break in February).
Note that the Euro-Stoxx50 returned to equilibrium around 4.368Pts.
The session promised to be busy, as the results season is now in full swing.
Among the big American names due to publish their accounts today were Goldman Sachs (+1% only despite the announcement of a dividend increase) and Halliburton (quarterly net profit weighed down by losses linked to transactions in Argentina), alongside closely followed European stocks such as ASML (-2.2%, despite a net profit of $1.94 billion against 1.41 a year earlier and 1.82 billion expected by the consensus, and despite an increase 27% of sales).
Publications from IBM, Netflix and Tesla are expected in the evening.
In the meantime, Wall Street rose by 0.3 on average (S&P500) with +0.2% for the Nasdaq, and +0.4% on the Dow Jones.
Since the good US inflation figures released last week, investors have felt a little invincible and solid corporate results could support their recent renewed optimism.
The Parisian market seems to be experiencing some difficulty in prolonging the upward momentum of the past week, which allowed it to claim almost 4%.
With slower growth looming in the second half of the year, traders may be tempted to start taking profits.
‘Some stakeholders are wondering in particular about the valuation of the American market while the second half should not be as buoyant as the first in terms of growth’, underline the teams of Fidelity.
“The economy is currently overleveraged and asset valuations are skyrocketing,” said Peter Garnry, head of equity strategy at Saxo.
‘A soft landing is very unlikely in this environment and, as an economic concept, it is extremely rare’, notes the analyst.
The approach of the Federal Reserve meeting on July 25 and 26, which should lead to another rate hike, also seems to encourage investors to be cautious.
On the macroeconomic front, was marked by the publication of the latest inflation figures: the rise in consumer prices slowed to +5.5% year on year in June in the euro zone, mainly under the effect of energy prices, according to final data published on Wednesday by Eurostat, which confirms an initial estimate.
This figure marks a marked slowdown compared to May, which had seen the consumer price index climb by 6.1%, and compared to June 2022, which had seen prices soar by 8.6%.
Excluding energy, the index nevertheless shows an increase of 6.9% over one year.
In the United States, attention was focused on building permits and housing starts in the United States: the Commerce Department reports an 8% drop in housing starts in the United States in June, to 1,434,000 at an annualized rate, a level generally lower than economists’ expectations.
For their part, building permits for American housing – supposed to prefigure future housing starts – fell by 3.7% to 1,440,000 at an annualized rate last month, a level also below the market consensus.
On the bond front, the trend has reversed since 3 p.m. and is turning negative with +4pts on OATs and Bunds at 2.945% and 2.3880% respectively, T-Bonds remain stable at 3.7800%.
In the news of French companies, the Chinese joint venture of Alstom, CRRC Puzhen Alstom Transportation Systems (PATS) and Shanghai Shenkai Public Transport Operation Management have signed a contract for the maintenance of the electromechanical system of the Pujiang line in Puzhen, Nanjing .
Renault Group says it sold 1,133,667 vehicles worldwide in the first half of 2023, a number up 13% year-on-year. In Europe, the automaker’s sales rose 24% in a market up 17%.
Finally, Air Liquide announces that it will, through its engineering and construction activity, collaborate with KBR to offer technological solutions for the production of low carbon ammonia integrating its autothermal reforming process (ATR).
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