CAC40: Affected by W-Street instability and sharp rate pull – 06/28/2022 at 17:01

(CercleFinance.com) – The volatility returned this afternoon and it came to us from Wall Street: the Dow Jones opened + 0.5%, rose sharply + 1.2% but now shows only 0, 2% an hour later.

The Paris stock market rose a maximum of + 1.5% at 4pm and rose + 0.9% to 6,100 in 45 minutes.

The rise in the last 48 hours is unbelievable from the point of view of volume because less than 1.3 billion euros have been transacted since the opening in Paris: so it is growing – true for 3 days – but in a vacuum.

Euro-Stoxx50 is up only + 0.6% but it has surpassed CAC40 the day before.

It’s hard to navigate Wall Street with the Dow Jones losing 1% in an hour, an S&P 500 + declining from 1% to -0.2% and Nasdaq evolving into red

So caution has been exercised before the release of many leading figures in the second half of the week.

Furthermore, yesterday’s session scenario – the 1.3% rise in the morning and the market retracing and closing in red – testifies to the fragility of the trends and a certain reluctance of investors.

Nevertheless, the recovery observed in the global stock market last week suggests that investors have begun to express their concerns about the sharp rise in inflation, which is the source of the recent rise in risk aversion, in view.

The return of this cowardly confidence in the market was encouraged last week by the start of easing bond yields, an event that could encourage investors to resume their purchases.

But the tide has reversed again and profits (in our Treasury bonds) from June 17 have been completely wiped out in the space of 40 hours.

As the day continues to cool in the bond sector – in the absence of important indicators – our OAT yield has 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 announced this morning that it wants to go “as far as necessary to fight inflation”, which is seen as a sign of resilience (controlling demand) with the watermark of the risk of our economy falling into recession.

‘Macro’ data tomorrow, among others, includes a new estimate of first-quarter American GDP.

With the release of the Conference Board’s Consumer Confidence Index at 4:00 pm this Wednesday, the most anticipated figure in the United States will be read, expected to ease sharply in June due to inflationary pressures that are increasingly punishing consumer purchasing power.

But to this day, we are aware of a bad index in France: for the sixth month in a row, family confidence has dropped to around 82 according to the INSEE, lower than the long-term average (100 January 1987 to December 2021).

The June figures came below the 84 consensus and the May index was further revised from 86 to 85.

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

According to French companies, the luxury aviation sector (+ 4.2%, + 3.3% with Safran / Airbus) is ahead of luxury with LVMH + 2%, Kering + 1.9%, Hermes + 1.4%.

On the downside, CapGemini (-2%) is the only CAC title that loses more than 1%.

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.

Finally, Solution 30 indicates that it has entered into exclusive discussions aimed at achieving energy reform expert EnergyGo, which offers a turnkey offer of solutions to engage with qualified individuals for support projects.

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