The Paris Stock Exchange has destroyed most of its losses, and Wall Street is ready to recover at the opening. Stakeholders are tempted by the levels of assessment, which have become attractive, especially because at the close of Wednesday Cac 40 fell by almost 20% from the peak in early January. Recently attacked, luxury stocks and stocks related to raw materials are in demand and banks remain under pressure. Oil prices also erased their morning losses. In the United States, weekly unemployment claims fell by 2,000 to 229,000 from an expected 226,000.
However, the environment is characterized by poor economic performance and, in particular, a marked slowdown in private sector activity in the euro area in June. The previous consolidated PMI S&P Global index (synthesis between industry and services) fell to a minimum in 16 months to 51.9 points. The climate also remains tense in terms of monetary policy in the face of galloping inflation. ” The situation remains the same, but it seems that the market is beginning to live with it, looking for the bottom line. sums up Diego Fernandez, A&G Banca Privada in Madrid.
Shortly after 2:30 p.m. Bedroom 40 almost stable at 5,909.66 points (-0.12%) after the minimum value of 5,830.87 (-1.44%) with a business volume of 1.26 billion euros. Contracts future on U.S. indexes rose between 0.3% for the Dow Jones and 0.7% for the Nasdaq 100. Wall Street closed just below balance on Wednesday.
The eurozone is in a phase of stagflation
Global S&P Survey in the Eurozone reflects the continuing slowdown in the services sector, while industrial production now appears to be falling sharply. As price indices remain extremely strong, the eurozone appears to have entered a period of stagflation (Stagnation of the economy, accompanied by high inflation, editor’s note), says Jack Allen-Reynolds of Capital Economics.
Jerome Powell will address the House Finance Committee from 4 p.m., the day after his speech before the Senate Banking Committee. Yesterday, the Fed chairman reiterated that the central bank ” firmly set to reduce inflation a message suggesting that the Fed will continue its cycle of sharp rate hikes. He also acknowledged that these increases could lead to a contraction in the economy and that a soft landing ” it would be very difficult adding that the recession was ” definitely an opportunity “.
Rumors of Atos, Deutsche Bank supports Eurofins
Athos lead by almost 7%. Thales will have the support of the Ministry of Economy and Finance and the Directorate General of Armaments to try to take over the Digital Cybersecurity Services Group, BFM Business.
Thales, in turn, is 1.1%. Jefferies analysts note that the division of Atos into two organizations will take place no earlier than 2024. If BFM information is verified, the acquisition is likely to cover all Atos activities. Thus, given the latter’s depressed assessment, Jeffries believes that a possible deal is likely to apply to what he sees as negative for Thales. But this effect could be mitigated by partnering with an investment fund, as mentioned earlier this year, which could take over digital services.
Eurofins Scientific increased by 1.7%. Deutsche Bank has raised its name recommendation from “sell” to “hold”, keeping the target price at 80 euros. The same broker initiates hedgingUbisoft (+ 0.7%) for a “purchase” with a target price of 60 euros.
finally, Valneva suspended from trading pending a press release.