The Paris Stock Exchange is hesitant at the end of the afternoon, slowed down by Wall Street, which oscillates around its closing levels on Friday. The Cac 40 has fallen seven times in the last eight sessions in anticipation of a tightening of monetary policy by central banks, and in particular the ECB, to curb inflation while soaring gas prices pose a threat for household purchasing power and corporate margins. The “utilities” strategists at Goldman Sachs estimated on Tuesday that the energy bill of European households should increase by 2,000 billion euros during the peak expected at the start of next year.
Shortly after 5 p.m., the Bedroom 40 nibbles 0.3% to 6,120.34 points in a business volume of 1.25 billion euros. In New York, the Dow Jones gains 0.28% but the Nasdaq Composite loses 0.23%. The yield on the US 2-year bond rose back above the 3.5% threshold, thus returning to its highest levels since the end of 2007. Growth in non-manufacturing activity accelerated in August, the Index compiled by the Institute for Supply Management (ISM) rose 0.2 points to 56.9, posting its best level since April. An acceleration that confirms expectations of a further major tightening of Fed rates on 21 September.
Relapse in oil prices despite OPEC+
Recession fears from soaring energy prices remain strong after the shutdown sine die Russian gas deliveries via the Nord Stream 1 gas pipeline, which dragged the euro below the 0.99 dollar threshold on Monday for the first time in 20 years. In Germany, particularly exposed to soaring energy prices, industrial orders fell by 1.1% in July, thus posting their sixth consecutive drop.
On the oil front, the barrel of Brent from the North Sea fell 2.5% to 92.73 dollars, the increase following the decision of OPEC + to reduce its production by 100,000 barrels per day being offset by the risk of a drop in demand against the backdrop of confinements in China, where several large cities remain in the grip of drastic health restrictions. The Saudi company Aramco has also announced a price reduction for its Asian customers. Yesterday’s rare increases, TotalEnergies and Vallourec fell by 2.7% and 5.6% respectively. The oil services group CGG loses 5%.
Automobile bounce
Attacked yesterday, equipment manufacturers and car manufacturers are regaining some ground. Faurecia takes 2.5%, Valeo 1.4%, Renault 1.4% and Michelin 0.8%.
Among other cyclical values, Saint Gobain gain 1%.