The Paris Stock Exchange wiped out most of its losses, while Wall Street is poised to rebound at the open. Stakeholders are tempted by valuation levels that have become attractive, especially since, at Wednesday’s close, the Cac 40 was down nearly 20% from its peak in early January. Recently attacked, luxury stocks and those linked to raw materials are sought after, while banks remain under pressure. Oil prices have also erased their losses of the morning. In the United States, weekly jobless claims fell by 2,000 to 229,000, against 226,000 expected.
The environment is nonetheless marked by poor economic indicators and in particular by the marked slowdown in activity in the private sector in the euro zone in June. The preliminary PMI S&P Global composite index (synthesis between industry and services) fell to a low of 16 months at 51.9 points. The climate also remains tense in terms of monetary policies in the face of galloping inflation. ” The situation remains the same, but it seems that the market is starting to live with it as it looks for a low point. sums up Diego Fernandez, of A&G Banca Privada in Madrid.
Shortly after 2:30 p.m., the Bedroom 40 is almost stable at 5,909.66 points (-0.12%), after a floor at 5,830.87 (-1.44%) in a business volume of 1.26 billion euros. The contracts future on US indices gained between 0.3% for the Dow Jones and 0.7% for the Nasdaq 100. Wall Street closed just below equilibrium on Wednesday.
The euro zone in a phase of stagflation
The S&P Global Eurozone Survey reflects a continued slowdown in the services sector, while manufacturing output now appears to be falling sharply. With price indices remaining extremely strong, the Eurozone appears to have entered a period of stagflation (Stagnation of the economy accompanied by high inflation, editor’s note), notes Jack Allen-Reynolds, of Capital Economics.
Jerome Powell will address the House Financial Affairs Committee from 4 p.m., the day after his appearance before the Senate Banking Committee. The Fed Chairman reiterated yesterday that the central bank was ” firmly committed to lowering inflation a message that suggests the Fed will continue its cycle of steep rate hikes. He also acknowledged that these tightenings could cause the economy to contract and that a soft landing “ would be very difficult adding that a recession was ” definitely a possibility “.
Rumors about Atos, Deutsche Bank supports Eurofins
Atos advance of almost 7%. Thales would have the support of the Ministry of Economy and Finance and the Directorate General of Armaments to try to take over the cybersecurity activities of the digital services group, according to BFM Business.
Thales, takes for its part 1.1%. Jefferies analysts point out that the split of Atos into two entities will not take place before 2024. If BFM’s information is verified, a takeover should probably cover all of Atos’ activities. Thus, given the depressed valuation of the latter, Jefferies believes that a possible agreement would probably relate to the whole, which he perceives as negative for Thales. But this effect could be mitigated by a partnership with an investment fund, as mentioned at the start of the year, which could take over the digital services activities.
Eurofins Scientific increased by 1.7%. Deutsche Bank raised its recommendation on the title from “sell” to “hold” while maintaining its price target at 80 euros. The same broker initiates hedgingUbisoft (+0.7%) to “purchase” with a target of 60 euros.
Finally, Valneva is suspended from trading pending a press release.