The Paris Stock Exchange rebounded on Wednesday morning after experiencing its worst session the day before since the beginning of June. The market is benefiting from the jump on Wall Street, which ended above its lows on Tuesday, as well as the surprise rebound of 0.1% in German factory orders in May after a contraction of 1.8% in April . But the trend remains fragile due to heightened recession fears. Investors are also awaiting the minutes of the last meeting of the Fed’s monetary policy committee in the evening.
Shortly after 9:30 a.m., the Bedroom 40 gained 2.23% to 5,924.03 points in a business volume of 340 million.
Wall Street ended on a choppy note yesterday, with the Dow Jones losing 0.4%, while the Nasdaq Composite lined up for a second straight session up with a 1.8% gain. The “techs” were indeed supported by the easing observed on the bond market, which is benefiting from a “flight to quality” in this period of inflationary tensions and tightening of the monetary policy of the central banks.
The euro hits a 22-year low
In the foreign exchange market, the dollar continues to strengthen against the euro which hit a 22-year low against the greenback on Tuesday as the ECB faces historically high inflation and the risk of exploding yields. peripheral countries of the euro zone. The US currency is also strengthening against the pound sterling after the resignation of three British ministers, including the Chancellor of the Exchequer, Rishi Sunak.
On the commodities front, the barrel of Brent from the North Sea recovered 1.9% to 104.42 dollars after falling nearly 10% on Tuesday. US WTI-grade crude meanwhile briefly dipped below $100 before recovering. The icing on the cake, the Chinese authorities have launched a new campaign of Covid-19 detection tests in nine districts in the Shanghai region, raising fears of a new wave of confinements in the financial hub.
Safran and Airbus lead the Cac 40
Fears of an economic slowdown are therefore becoming more and more insistent and the probability of a recession in the United States next year is now estimated at 38%, according to the latest forecasts from Bloomberg Economics. Beyond the “minutes” of the last Fed meeting tonight, the market is especially awaiting the June employment report in the United States, which will be published on Friday.
Saffron rose 3.5% after the announcement by Air France-KLM of an agreement with CFM International (joint venture between GE Aviation and Safran) for the acquisition of 200 LEAP 1-A engines to equip its Airbus A fleet 320neo and A321neo. Airbus garners for its part 3.3% and Air France-KLM 3.9%.
Alstom won 3% after indicating that it had received an order estimated at 387 million euros from the Madhya Pradesh Metro Rail Corporation for the metros of the cities of Bhopal and Indore, in India.
Michelin appreciated by 2.8%. Barclays raised its recommendation on the stock of the tire manufacturer from “online weighting” to “overweight”. The same broker, on the other hand, downgraded Valeo (-0.9%) and Faurecia -3.4%) to “line weight” against “overweight” for the first and from “overweight” to “underweight” for the second.
Tech stocks are rising in the wake of the Nasdaq’s advance. STMicroelectronics gains 2.2% and Worldline 2.6%.
Accor takes 1.6%. The group has confirmed the renewal of the mandate of its CEO, Sébastien Bazin, to support the group’s new organization around two distinct poles including the “Economy, Midscale & Premium” division, which notably includes the brands Ibis, Novotel, Mercure, Swissôtel and Pullman, and the “Luxury & Lifestyle” division, bringing together brands from this universe.