Cac 40 returns to the threshold of 6000 points, raw materials return, Market news

The Paris stock exchange extended its rally on Thursday morning after a small gain on Wall Street yesterday, even as concerns about the outlook for the global economy remained. The market is indeed torn between growth fears and hopes that central banks will exercise restraint on the scale of the next rate hike. At the European level, 19 Stoxx 600 sectoral indices are in the red, starting with automotive (+3.1%), basic resources (+3%), oil and gas (+2.5%) and technology (+2.5%) . TotalEnergies gains 2.1%, Stellantis 4.3% and STMicroelectronics 2.3%.

About 10 o’clock in the morning in Bedroom 40 rose 1.63% to 6,008.69 after peaking at 6,013.34 (+1.7%) points on a business volume of nearly 400 million euros.

Not surprisingly, the “minutes” of the last meeting of the Fed’s monetary policy committee reflect the US central bank’s determination to stop inflation, albeit at the cost of slowing activity. Paul Ashworth, chief US economist at Capital Economics, however, notes that “ much has changed in the past two weeks, with prices falling sharply across a wide range of commodities as fears of a sharp slowdown in global economic growth intensified.

Between 50 and 75 basis points it is 50-50

For him, Whether the Fed raises rates by 75 basis points this month or back to 50 basis points will depend on the following data, including the June jobs report (due Friday) and consumer prices for the same month (due next Wednesday). He added that immediately after the June meeting comments from Fed officials indicated that a 75 basis point rate hike was the most likely option at the end of July. But recent events show that the odds of a 50 or 75 basis point gain are 50-50. “.

The European Central Bank will begin work this Thursday with the release of the minutes of the last scheduled meeting of its governing council, during which it announced a 25 basis point hike in key rates in July. These minutes may also refer to discussions on the development of an instrument designed to limit the risks of fragmentation between the heart and the periphery of the eurozone.

STMicro boosted Samsung sales

On the commodities front, Brent North Sea is trading just above $100 a barrel at 101.30 after falling more than 10% since the start of the week.

In the bond market, the yield on the US 10-year note edged up slightly at 2.93%%, but remains lower than the 2-year note. In the foreign exchange market, the euro is approaching parity with the dollar at $1.0187, thus remaining at a 2-year low.

STMicroelectronics increased by 2.3%. Like other players in the sector, the company benefited from Samsung’s 21% revenue growth in the second quarter. These numbers beat expectations, but somewhat allay fears about rising chip demand.

ArcelorMittal rose 3.6% on a rebound in iron ore prices, which lost nearly a quarter of their value in the second quarter, weakened in particular by the Chinese authorities’ zero-Covid policy.

score rose 2.6%, supported by a report from RBC, which took on the reinsurer’s “outperform” coverage to target €26.

Eurasian gains 1.4%. The investment firm sold its stake in Reden Solar to a consortium led by Macquarie Asset Management based on an enterprise value of €2.5 billion.

EDF catches its breath (+0.7%) after jumping 14.5% on Wednesday. The energy company and the state, which intends to nationalize the energy company, have decided to immediately begin the succession process for CEO Jean-Bernard Levy, the group announced.