(CercleFinance.com) – Buyers are back, this translates into a +1.4% rise in the CAC40 which is recovering towards 7,330 Pts, after a hesitant start to the session and the test of a floor at 7,210 (the weekly loss then reached -3.5%).
Optimism returns over US debt ceiling as Republican leader Kevin McCarthy assures ‘recovery will happen’ and points of contention are known: compromise won’t satisfy everyone, but it’s the clean of compromises!
The atmosphere is also heating up after the publication, at 2.30 p.m., of several major indicators, including that on ‘PCE’ inflation in the United States.
Wall Street applauds an economy that is showing resilience and it is a firework display that crowns a very positive week for the Nasdaq (+1.7% to 12,900 or +2% weekly), the S&P500 +1.3% to 4,200, and +1.1% for the Dow Jones which recrossed the 33,000Pts.
Investors want to see the glass half full (and hide the risk of rising rates) while the PCE price index comes out at +0.4% and +4.7% YoY (excluding food and energy ), it was expected to be 0.1% weaker on an annualized basis and unchanged sequentially (instead of up).
Household consumption expenditure rose 0.8% in April compared to the previous month in the United States, according to the Commerce Department, an increase well above consensus (+0.4%), for incomes up 0.4%.
The Department of Commerce also announces a 1.1% increase in durable goods orders in the United States in April, after a rise of 3.3% in March (revised from an initial estimate which was 3.2% ).
However, excluding transportation equipment, US durable goods orders fell 0.2% in April.
Traders took note of the UMich confidence index in the United States: it recovered by +1.5pt to 59.2 and exceeded expectations (58), which did not weigh down US T-Bonds any further.
US T-Bonds are only up +3.3Pts at 3.844%. but mortgage rates are once again flirting with 7%
In France, we became aware of the household business survey shortly before the opening.
In May 2023, household confidence in the economic situation in France was stable, its synthetic indicator calculated by INSEE remaining at 83, a level well below its long-term average (100 between January 1987 and December 2022).
The OATs are still struggling: they take +4 Pts of return to 3.112%: we are approaching the worst levels of the year 2022 (December) and 2023 (early March) since the 3.25% are not very far away.
The Bunds are up 5pts at 2.5390%, the Italian BTPs up 5.6pts at 4.401% (this is starting to become critical for the sustainability of the Italian debt).
Nothing has been going well for a week in the United Kingdom with Gilts which reached 4.43%, their worst levels since the end of September 2023 and even for 12 years (4.402% at 5 p.m.).
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Unsurprisingly, the tension in rates weighed on gold, which fell -0.7% towards $1,945.
The Dollar remains almost stable around 1.0710/E.
In the securities news in Paris, Casino announces the opening of a conciliation procedure with its financial creditors, as well as the signing of a protocol with Les Mousquetaires to extend their partnerships and optimize their networks.
The credit insurance company Coface published Thursday evening a net result group share up 17% to 61.2 million euros for the first three months of the year, for a growing turnover by 11% to 475.1 million.
After suspending its industrial activities in Russia in March 2022, Michelin announces the signing of an agreement with Power International Tires, for the acquisition by the latter of its two local companies, Michelin Russia Tire Manufacturing Company and Camso CIS.
Atos announces that the United States Court of Appeals overturned a lower court ruling that found Syntel, now part of Atos, liable for $570 million in damages to be paid to TriZetto.
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