The Paris Stock Exchange is moving forward again after two sessions of decline in a row, mainly driven by luxury stocks and large industrialists. The oil and gas sector, on the other hand, shows the largest sectoral decline in Europe (-0.3%) in the wake of the 1% decline in the barrel of Brent from the North Sea to 115.32 dollars. Saudi Arabia could indeed raise its oil production to compensate for a possible inability of Russia to increase its pumping due to Western sanctions. The decision of OPEC + on its production is expected this Thursday.
Shortly after 2:30 p.m., the Bedroom 40 gains 1.26% to 6,500.04 points in a business volume of 910 million euros, limited by the closure of the British markets for the Platinum Jubilee (70 years of reign) of Queen Elizabeth II. The contracts future on American indices gained between 0.4% and 0.6%.
Jamie Dimon is expecting a “ hurricane ” economic
On the macroeconomic front, the American private sector created 128,000 jobs in May, according to the ADP Employer Services survey, against 300,000 anticipated by the consensus formed by Bloomberg and 202,000 (revised from 247,000) in April. Jobless claims meanwhile fell by 11,000 to 200,000 last week, from an estimated 210,000. Regarding the euro zone, producer prices rose by 1.2% in April and by 37.2% over one year, a new record, against increases of 2% and 38.2% respectively expected by the market. The statistics do not, however, allay fears about inflation and the risk of recession at a time when central banks are tightening their monetary policy.
The yield on the US 10-year bond is stabilizing around 2.90% after suffering a strong sell-off the day before, as the surprise acceleration in the growth of manufacturing activity in the United States suggests that the Fed may be more aggressive without causing a recession. JPMorgan Chase boss Jamie Dimon further advised investors to be prepared for a “ hurricane ” economic. He also warned of the risk of renewed market volatility as the Federal Reserve began the process of reducing the size of its balance sheet by letting the bonds it holds mature without replacing them.
Saint-Gobain confirms
Biggest increase in the Cac 40, Saint Gobain increased by 4.2%. The building materials manufacturer confirmed that it expects record operating income and a double-digit margin for the first half of its 2022 financial year. the group expects the operating result to exceed the record level of the first half of 2021 and the operating margin to reach a double-digit level “, he said in a press release.
Remy Cointreau gained 3.8%, supported by annual results qualified as “ reassuring by Morgan Stanley. The spirits group was again confident about the financial year which will end at the end of March 2023, after achieving “record” results during the 2021-2022 financial year. He always foresees a strong start to its activity in the first quarter despite a very high basis of comparison and a context marked by the pandemic in China “. In its wake, Pernod Ricard rises 2.4%.
The luxury sector is also surrounded. LVMH thus takes 2%, Kering 2.4%, Hermes 2.1% and L’Oreal 3.6%.