Fears of a recession continue to affect Thursday’s trend, which is still fueled by a more aggressive turn by central banks in terms of raising interest rates. The slowdown in private sector activity in France is also reflected in the compiled S&P Global (synthesis between industry and services) index, which fell to a 5-month low of 52.8 points. Data across the eurozone will be released around 10 am. Sensitive to demand, oil and other commodity prices bear the brunt.
At 9:35 Bedroom 40 decreased by 1.02% to 5856.37 points with a business volume of 290 million euros.
The risk of declining demand due to the economic slowdown weighs on oil prices, which are moving to lows for more than a month. A barrel of Brent fell 1.6 %% to $ 109.76, and a barrel of WTI quality is dangerously close to the threshold of $ 100. Joe Biden has asked Congress to pass a three-month suspension of the federal tax on gasoline and diesel. In Paris, TotalEnergies fell by 1.6% and Vallourec from 1%. Among other values related to raw materials, ArcelorMittal loses 1.9% and Eramet 4.3%.
Wall Street canceled its initial earnings on Wednesday night after the chairman of the Federal Reserve reiterated that the central bank ” firmly set to reduce inflation “, A statement stating that the Fed will continue the cycle of serious tightening of monetary policy. Speaking before the Senate Banking Committee, Jerome Powell even uttered the infamous “R-word”, acknowledging that a sharp rise in rates could lead to a contraction in the economy and a soft landing. it would be very difficult adding that the recession was ” definitely an opportunity “.
An increase of 75 basis points in July?
For observers, this speech does not bring much new compared to last Wednesday’s press conference after the FOMC. But ” his persistence in insisting on convincing evidence that inflation is falling suggests that Fed officials will repeat a sharper increase of 75 basis points last week at their July meeting. says Michael Pierce of Capital Economics.
For Chris Weston of Pepperstone: « It is clear that the market considers the recession to be extremely likely, according to Powell, who explained that the recession was an opportunity, but not their intention. “.
Jerome Powell will address the House Finance Committee this afternoon as part of his six-month statement on monetary policy to Congress, but nothing significant is expected.
Eurofins with the support of Deutsche Bank, Valnova suspended
On the macroeconomic front, the US Department of Labor will release weekly unemployment data this afternoon. S&P Global will release its private sector activity indices in June’s rapid data across the Atlantic.
Eurofins Scientific increased by 1.3%. Deutsche Bank has raised its name recommendation from “sell” to “hold”, keeping the target price at 80 euros. The same broker initiates hedgingUbisoft stable) “buy” with a target price of 60 euros.
Athos 5% advance. Thales will have the support of the Ministry of Economy and Finance and the Directorate General of Armaments to try to take over the activities of the Digital Cyber Security Services Group, BFM Business.
finally, Valneva suspended from trading pending a press release.