Cac 40 reduces its sails between cheap purchases and fear of recession, market news

The Paris Stock Exchange remains in the green state, but is developing below the highest level per day. Investors are torn between ongoing cheap purchases and fears of a recession. They are also interested in the impact of the economic slowdown on central banks’ monetary policy, hoping that they will be less aggressive. The growth of stocks related to raw materials is still an ancillary factor.

The middle of the session, Bedroom 40 rose 0.30% to 6,091.74 points after a peak of 6,156.60 (+ 1.37%) with a business volume of 750 million euros. Contracts future according to American indices occupy from 0.4% to 0.7%. Last week, the S&P 500 grew 6.5%, the best figure for the week.

And what about profit forecasts?

According to strategists Morgan Stanley, European stocks have not yet appreciated prices at risk of recession, despite the low level of evaluation. ” Stock markets typically recede two to three weeks before earnings forecasts begin to revisit downward, but the latter have not yet begun to slide into negative territory. “, They emphasize. They expect the decline in earnings targets to begin in the third quarter.

This last week of the first half of the year should also be triggered by portfolio adjustments by key institutional investors who need to support the markets. Marko Kolanovic, JPMorgan’s chief market strategist, believes that these adjustments should lead to a significant increase in shares, especially since he considers the market oversold. Ipek Ozcardeska, an analyst at Swissquote Bank, is more restrained, arguing that the scale of last week’s rebound is questionable because ” 3-4% stock growth is a sign that market volatility remains high, conditions are volatile and profits may not last long “.

Inflation is back on the menu for the week

Investors remain focused on macroeconomic indicators, as the inflation expectations component of the University of Michigan’s consumer sentiment index has stabilized against all expectations. Last week, Jerome Powell told Congress that a soft landing for the US economy is a challenge and that the recession remains. ” possibility “He also argued that the Federal Reserve System.” fully defined to fight inflation.

San Francisco Fed President Mary Daly said on Friday that she was in favor of raising the Fed rate by 75 basis points, while her colleague from the St. Louis office, James Bullard, considered fears of a recession exaggerated.

Inflation will once again be in the spotlight this week with U.S. household income and expenditure statistics on Thursday, including the PCE component of personal consumption expenditure, the Fed’s most focused measure of inflation. In the Old Continent, data on consumer prices in the eurozone will be released on Friday.

But before that this afternoon, the market will follow the evolution of orders for durable goods in the United States in May, as well as promises to sell housing for the same month.

The car is in the spotlight

The automotive sector is gaining momentum after three weeks of decline in a row. Fauretia rose 3.1% as Jefferies raised its equipment manufacturer’s recommendation from “hold” to “buy.” Valeo further with a profit of 2%, Michelin rose by 1.2% and Renault at 2.2%. Plastic omnium gives himself 2.5%. The group has reached an agreement to acquire Actia Power, a vehicle electrification division of the French group Actia, at a cost of € 52.5 million.

Valneva increases by 2.5%. The pharmaceutical group said it had received marketing authorization from the European Commission in Europe for its inactivated Covid-19 vaccine. This permit applies to 27 EU countries, as well as Iceland, Liechtenstein and Norway.

EssilorLuxottica lose 1%. The group announced the death of its president, Leonardo del Vecchio, at the age of 87.

Ipsen fell 3.6% after the announcement of the acquisition of the American biopharmaceutical company Epizyme, which specializes in oncology, for an initial amount estimated at 247 million dollars (234 million euros).