CAC40: translucent session, zero volumes, oil rebound

( – The Paris Stock Exchange is going nowhere and has been oscillating for more than 7 hours between +0.2% and -0.2% (around 7,200) in volumes that are still just as anemic (less than 1.15 billion euros). in 8 hours of quotations). The Euro-Stoxx50 fell by -0.1% while it is dead calm on the US indices which do not shift by more than 0.1% (S&P500 and Nasdaq), the Dow Jones is at a complete standstill .
Investors seem to want to put themselves in a waiting position waiting for the next element likely to push the market higher, or on the contrary lead to an episode of consolation.

Many strategists point out that the buoyant winds that have recently supported the indices are turning: interest rates are rising, inflation is struggling to ebb and the cost of capital is rising.

In addition, orders to manufacturing industry in Germany fell by -0.4% (against an anticipation of stability in April) according to the provisional results of Destatis.
Retail sales were unchanged in the euro zone in April from the previous month, data released by Eurostat on Tuesday showed. According to estimates from the Statistical Office of the European Union, retail trade volume rose 0.5% month-on-month for non-food products.

Laura Corrieras, equity portfolio manager at Indosuez Wealth Management believes that a “liquidity crisis could even threaten the markets, with a risk of destabilization as a result, not to mention the persistent uncertainties surrounding growth and keeping players in a state of alive’.

‘Furthermore, we are seeing a clear dissonance between the Fed, which is not considering any rate cuts, the resilience of equity markets and bond market expectations – which are pricing in several rate cuts as early as this year’

The yield of 10-year Treasuries deteriorated slightly, by +3pts to 3.723%, despite the prospect of a status quo from the Fed at the end of its meeting next week.

On the Old Continent, yields are stagnating: that of the 10-year Bund, the euro zone’s benchmark rate, tightened by one basis point to 2.384%, with the same difference on our OATs at 2.934%.
In the energy market, benchmark crude contracts are resurfacing a little after falling -2% in the morning on profit taking after rebounding strongly yesterday in reaction to OPEC’s promise to reduce its production in order to support the courses.

Brent lost only 0.2% to $76.4 a barrel, while American light crude (West Texas Intermediate, WTI) returned to a perfect balance at $72 against $70.15 this morning.

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