On Wednesday, the Paris stock exchange rose slightly. In particular, the market reacted to the end of a strike by oil and gas workers in Norway, which led to a drop in gas prices on the Amsterdam futures market by 6.5% after a jump of 28% in five days. The market also welcomed a surprise recovery in industrial orders in Germany in May. But this trend remains volatile 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.
Around 10:30 a.m Bedroom 40 increased by 1.48% to 5880.39 points, and the volume of business was 592 million. Contracts future on US indices hovering around balance after finishing in scattered order the day before.
In New York, the Dow Jones fell 0.4% on Tuesday, while the Nasdaq Composite ended its second straight session up 1.8%. Technicals have indeed been supported by the softening seen in the bond market, which has benefited from a “flight to quality” during this period of inflationary pressures and tightening central bank monetary policy.
The euro has reached a 22-year low
In the foreign exchange market, the dollar remains steady 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 a sharp rise in the country’s yields. 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, Brent North Sea crude recovered 2.2% to $104.82 a barrel after falling nearly 10% yesterday. 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.
Aeronautics in the spotlight
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.
Saffron rose 4% following Air France-KLM’s announcement of an agreement with CFM International (a joint venture between GE Aviation and Safran) to acquire 200 LEAP 1-A engines to power its fleet of Airbus A 320neo and A321neo aircraft. Airbus receives from its side 2.9% and Air France-KLM 2.5%.
Alstom also gained 3.8% after indicating that it had won an order for the Bhopal and Indore metros in India from the Madhya Pradesh Metro Rail Corporation worth 387 million euros.
Michelin rose in price by 2.6%. Barclays raised its recommendation on the tire maker’s stock from “overweight” to “overweight.” The same broker, on the contrary, lowered the rating Valeo (-4%) and Faurecia -5.2%) to “line weight” versus “overweight” for the former and from “overweight” to “underweight” for the latter.
Athos rose 5.6%, while Bank of America increased its stake to 7.7% of capital and voting rights, according to a document provided to Autorité des marchés financiers cited by Bloomberg.
Other technology stocks are rising as the Nasdaq rises. STMicroelectronicss gets 3.1% and World line 2.8%.