The Paris Stock Exchange continues its “bear market” rebound thanks to bargain purchases after three consecutive quarters of decline, an unprecedented series since 2009. The movement is accentuated by the good performance of Wall Street at the opening, American investors attempting to prolong yesterday’s “relief rally”.
Markets now seem to be pricing in a less aggressive approach from the Fed on the size of its next rate hikes, although it is unlikely to change its tune until inflation subsides. not really under control.
Shortly after 4 p.m., the Bedroom 40 climbed 376% to 6,00.75 points after a peak at 6,021.03, unprecedented since September 21 (6,034.27), two days before the presentation of the British “mini-budget”. In New York, the Dow Jones wins 2.34% and the Nasdaq Composite 3.10%.
Bad news is good news
The marked slowdown in the growth of manufacturing activity in the United States gives hope that the latest monetary tightening is beginning to bear fruit. ” In a way, this is the opposite of the ‘good news is bad news’ phenomenon of the past few weeks, when strong statistics were seen by investors as giving the Fed more leeway to continue its rate hikes.explains Jim Reid, of Deutsche Bank. This time it’s the opposite with the index [ISM] September stood at 50.9 (vs. 52 expected), its lowest level since May 2020, when the economy was still suffering the effects of the lockdowns. “, he adds.
Some professionals warn against being too optimistic. ” It is not uncommon to witness bear mark reboundst, recalls Mabrouk Chetouane, head of global markets strategy at Natixis Investment Managers. We don’t have enough data to support the scenario of a central bank pivot », noting that the next statistics concerning activity in services and employment in the United States should provide new indications.
Industrial orders stagnated as expected in August across the Atlantic, while the contraction in durable goods orders was confirmed at 0.2% for the same month.
General rebound, luxury and tech in mind
The yield on the US 10-year bond eased 5 basis points to 3.6071% after briefly crossing the 4% mark last week. That of the German Bund of the same maturity, which serves as a benchmark in the euro zone, fell by 6 basis points to 1.8490%.
Thales except, all the components of the Cac 40 are on the rise, starting with growth stocks such as technology or luxury. STMicroelectronics increased by 5%, Capgemini by 5.3%, Dassault Systems by 3.3%, Hermes by 5.3% and LVMH by 5.1%.
Large cyclicals also rise in the image ofAirbus (+6.6%), Schneider-Electric (+5.9%) and Saint Gobain (+3.6%). The manufacturer is said to be about to sell Jewson, its British building materials distribution subsidiary, which could earn it more than 1 billion pounds sterling, according to sources cited by Bloomberg.
Conversely, M6 10% drop. Bertelsmann has given up selling its 48.3% stake in the channel’s capital. For operators, it is the end of the speculative premium in this case.
Sodexo increased by 4.7%. Barclays raised its recommendation on the title of the collective catering group from “underweight” to “overweight” and raised its price target from 81 to 90 euros.