Cac 40 rebounds more than 1%, but recession fears intensify Market News

The Paris stock exchange regained a little higher after opening the day before after its worst session since early June. The market particularly welcomed a jump in Wall Street, which topped its low on Tuesday, as well as a surprise rebound in orders for German manufacturing to 0.1% in May after a contraction of 1.8% in April. But the trend looks fragile again due to increased fears of a recession. Investors are also waiting for the minutes of the last meeting of the Fed’s monetary policy committee in the evening.

At 9:10 in the morning Bedroom 40 gained 1.41% to 5876.91 points.

Wall Street ended yesterday on a mixed note, with the Dow Jones losing 0.4%, while the Nasdaq Composite rose 1.8% for the second consecutive day. “Technicians” were indeed supported by the softening observed in the bond market, which benefits from the “flight to quality” in this period of inflationary tension and tightening of monetary policy by central banks.

The euro has reached a 22-year low

In the foreign exchange market, the dollar continued to strengthen against the euro, which hit a 22-year low against the dollar on Tuesday, as the ECB faces historically high inflation and the risk of an explosion in yields in the eurozone’s periphery. The US currency is also strengthening against the pound after the resignation of three British ministers, including Chancellor of the Exchequer Rishi Sunak.

On the commodity front, North Sea Brent crude recovered 1.9% to $104.42 a barrel after falling nearly 10% on Tuesday. U.S. WTI crude, meanwhile, briefly fell below $100 before recovering. The icing on the cake is that Chinese authorities have launched a new campaign of Covid-19 tests in nine districts in the Shanghai region, raising fears of a new wave of restrictions in the financial hub.

Alstom on order in India

Fears of an economic slowdown are therefore becoming more persistent, with the probability of a recession in the United States next year estimated at 38%, according to the latest forecasts from Bloomberg Economics. In addition to the “minutes” of the last meeting of the Fed tonight, the market is especially waiting for the June employment report in the United States, which will be published on Friday.

The greatest increase in Cac 40, Alstom rose 3.6% after it said it had won an order worth 387 million euros from Madhya Pradesh Metro Rail Corporation for metros in the cities of Bhopal and Indore in India.

Michelin rose in price by 2.8%. Barclays raised its recommendation on the tire maker’s stock from “overweight” to “overweight.” The same broker, on the contrary, lowered the rating Valeo (-1.7%) and Faurecia (-2.6%) to “line weight” versus “overweight” for the former and from “overweight” to “underweight” for the latter.

Shares of tech companies are rising in connection with the growth of the Nasdaq. STMicroelectronicss gets 2.2% and World line 2.5%.

according to occupies 2%. The group confirmed the reinstatement of its CEO SĂ©bastien Bazin to support the new organization of the group around two different poles, including the division “Economy, Midscale & Premium”, which in particular includes the brands Ibis, Novotel, Mercure, SwissĂ´tel and Pullman and the division “Luxury & Lifestyle “, which unites brands from this universe.