Cac 40 bounces back after sharp slowdown in euro zone growth in June, Market News

The Paris stock exchange erased its gains from the previous day, as a slowdown in private sector activity in the eurozone in June outweighed a pick-up in China and hopes of easing trade relations between Washington and Beijing. The composite index PMI (synthesis between manufacturing and services) calculated by S&P Global actually fell to a 16-month low in June nineteen. ” A sharp slowdown in the growth of activity, which was observed in June in the eurozone, increases the risk of contraction of the economy of the region in the third quarter. June’s PMI shows a level consistent with quarterly GDP growth of just 0.2% , with leading survey indicators such as the new orders and business outlook indexes also pointing lower and thus portending a slowdown in activity in the coming months concludes Chris Williamson, chief economist at S&P Global.

Around 10:35 a.m Bedroom 40 lost 0.97% to 5897.12 points with a business volume of 420 million euros. Contracts future on the American indices, the morning gain was destroyed.

Biden is ready to lower tariffs

The United States may this week announce a cut in tariffs on about $300 billion in Chinese imports in an attempt to curb inflation, The Reuters reported. The Wall Street Journal. Chinese Premier Liu He and the US Treasury Secretary discussed tariffs and supply chain issues during a video conference this morning. And the dialogue proved “constructive,” according to China’s Ministry of Commerce, which added that both sides agreed to better coordinate their macroeconomic policies.

Central banks are on the move

Central bank action remains a major concern for investors as the Bank of Australia raised its key interest rate by 50 basis points for the second straight time, the highest in the institution’s history. The US Federal Reserve is due to release the minutes of its June meeting on Wednesday, while the ECB will do the same on Thursday.

In the bond market, yields on U.S. Treasuries are rising again after falling on Monday ahead of the national holiday. The 10-year benchmark is trending up to 2.9023%, up from 2.8803% at Friday’s close, remaining below the 3% threshold. The German benchmark of the same maturity is down to 1.2660% after jumping 10 basis points on Monday.

The automotive sector is starting to fall again due to the slowdown in activity in the Eurozone. Renault loses 2.3%. However, the group announced that it has retained private equity firm Callista, which specializes in corporate restructuring, to acquire its Fonderie de Bretagne factory in Morbihan.

Valeo flounder 2.8%. The French equipment maker has announced the acquisition of Siemens’ 50% stake in Valeo Siemens eAutomotive, as part of an agreement signed with the German group in February.

The engine of yesterday’s session, TotalEnergies fell 1.8% as Brent fell in a market that remains volatile between fears of falling demand and the risk of a shortage.

Remy Cointreau up 4.1%, backed by a note from Jefferies, changed from “hold” to “buy.”

And vice versa, Publicis fell 3.4% as Goldman Sachs downgraded from buy to neutral.

Agricultural credit lost 2% as Deutsche Bank downgraded the stock from “buy” to “hold.”