(CercleFinance.com) – After rising 1.5% during the day, the Paris stock market dropped more than half of its profits and finally ended the session up 0.64%, trading at 6,086 points, opening less than 3 billion euros.
In Europe, London and Frankfurt are satisfied at around 0.9% and 0.3%, respectively, a good distance from their day highs (+ 1.4% and + 1.3%).
Across the Atlantic, U.S. indices remain in the red, with the Dow Jones now yielding 0.3% (although it has risen + 1.2% since opening), ahead of the S & P500 (-0.7%) and Nasdaq (-1.4%).
The release of an uncertain index in the United States seems to have upset investors, boosting the confidence of American consumers. According to a monthly survey by the Conference Board, it deteriorated again at least in June and testified to family concerns about inflation, especially fuel and food prices.
This data confirms the scenario of a severe recession in the world’s largest economy and even the growing threat of an impending recession.
“Whether we enter a recession or not, the expected slowdown in activity and the continued volatility of the market make an impression on investors in any case,” one trader underlined.
The same trend in France where investors have also learned of a decline in family confidence for the 6th consecutive month, at around 82 according to the INSEE, much lower than the long-term average. (100 between January 1987 and December 2021). The June figures came below the 84 consensus and the May index was further revised from 86 to 85.
This data is therefore cautious, especially since the release of many leading figures is scheduled for the second half of the week.
Nevertheless, the slight recovery seen in the global stock market last week suggests that investors are beginning to express their concerns about the sharp rise in inflation, which is the source of the recent rise in risk aversion.
The return of this timid confidence in the market was encouraged by the start of easing bond yields last week, an event that could encourage investors to resume their purchases.
However, while the day was expected to be calm in the bond sector – in the absence of important indicators – our OAT yield increased by an additional 11pts (the previous day + 11pts) to 2.198%. Bunds + 11Pts added (like Monday) 1.65%, while Italian BTPs – that’s the good news today – are down 3.693% from just 6Pts.
The ECB said this morning that it wants to go “as far as it needs to fight inflation”, which is seen as a sign of resilience (controlling demand) with economics risking a recession.
Tomorrow investors will be able to see a new estimate of US GDP in the first quarter.
On the currency front, the dollar recovered somewhat after falling to 1.0610 / E the day before: the euro rallied symmetrically by -0.5% to 1.0530 / 1.0525
In the news for French companies, the airline sector (Safran / Airbus with +3.8% and +1.8) as well as luxury (LVMH + 1.5%, Kering + 1.4%, Hermès +0, 5%) carry CAC.
Sanofi has announced that the European Commission has approved Zenpozyme for the treatment of non-neural manifestations of acid sphingomyelinase deficiency in children and adults with type A / B or type B acid sphingomyelinase deficiency.
Airbus has announced that it has won a 160 million euro deal for the European Space Agency’s (ESA) Forum (Far-Infrared Outgoing Radiation Understanding and Monitoring) satellite, which will measure heat emitted from Earth into space.
Solution 30 indicates that it has entered into exclusive negotiations aimed at achieving EnergyGo, an expert on energy reform, which offers a turnkey offer of solutions deployed with qualified individuals for support projects.
Finally, Michelin today announced plans to sell its activities in Russia to its local management by the end of 2022. The new entity would then work through a structure independent of Michelin.