The Paris Stock Exchange regains a little height thanks to bargain purchases after having closed yesterday its worst session in almost a month. The trend is supported by the end of the strike in the oil and gas sector in Norway after the intervention of the government, which is reflected in a slight decline in gas prices on the futures market in Amsterdam after a jump of 28 % in five days. At the European level, the Stoxx 600 of the distribution signs the best performance of the day after the announcement by Amazon of a 2% stake in Grubhub, American subsidiary of meal deliveries of Just Eat Takeway, which is soaring by nearly 20% in Amsterdam.
Around 2:30 p.m., the Cac 40 gained 1.42% to 5,877.36 points after a peak at 5,927.50 (+2.28%) in a business volume of 1.24 billion euros. The contracts futures on American indices gave up around 0.4% after ending in scattered order the day before between a 0.4% decline in the Dow Jones and a 1.8% gain in the Nasdaq Composite.
Towards euro-dollar parity
The market also welcomes the surprise rebound in orders to German industry in May. At the level of the euro zone, retail sales, on the other hand, only rose by 0.2% in May, ie two times less than expected. The trend remains fragile due to heightened recession fears.
On the foreign exchange market, at 1.0181 dollar, the euro is approaching parity with the greenback while the ECB, which is preparing to raise its interest rates, is faced with historically high inflation and at the risk of causing the yields of the most indebted countries in the euro zone to explode. The US currency is also strengthening against the pound after the resignation of several ministers from Boris Johnson’s government, including the Chancellor of the Exchequer, Rishi Sunak.
On the commodities front, a barrel of Brent from the North Sea recovered 2% to 104.59 dollars after falling nearly 10% yesterday. US WTI-grade crude meanwhile briefly dipped below $100 before recovering.
On the bond market, the yield on the US 10-year bond eased by 5 basis points to 2.76%, however the yield curve between the 2 and 10-year maturities was inverted for the third time this year. Such an inversion is generally a harbinger of a deterioration in the economy. The probability of a recession in the United States next year is now estimated at 38%, according to the latest forecasts from Bloomberg Economics.
Alstom and “techs” in the spotlight
Fears of an economic slowdown are therefore becoming more and more insistent and beyond the “minutes” of the last Fed meeting this evening, the market is above all awaiting the June employment report in the United States, which will be published on Friday before looking, from the end of next week, on the first results of the major American banks for the second quarter.
Alstom won 4% 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.
Safran rose 2.9% 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 2.9%.
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 (-2,4%) et Faurecia (-5.6%) to “line weighting” against “overweight” for the first and from “overweight” to “underweight” for the second.
Atos advance of 8.3% while Bank of America increased its stake to 7.77% of the capital and voting rights, according to a document sent to the Autorité des marchés financiers quoted by Bloomberg.
Other technology stocks rose in the wake of the Nasdaq’s rise late in the session in New York on Tuesday. STMicroelectronics gains 3.4% and Dassault systems rises as much.
TotalEnergies loses 2% and Engie 3% while Nupes deputies called yesterday for the introduction of a temporary tax of 25% on the “super profits” of energy groups to finance the aid provided for in the government’s bill on the power of purchase, which will be examined by the Council of Ministers on Thursday.
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