Cac 40 rises again thanks to falling gas prices, Market News

The Paris stock exchange recovered, being below its highs of the day. The market was supported by the end of a strike by oil and gas workers in Norway at the call of the government, which was reflected in a small decline in gas prices in the futures market in Amsterdam after a jump of 28% in five days. At the European level, the Stoxx 600 distribution is showing one of the best results of the day after Amazon announced a 2% stake in Grubhub, the US subsidiary of fast-growing Just Eat Takeway.17% in Amsterdam.

In the middle of the session Bedroom 40 rose 1.55% to 5,884.90 points after peaking at 5,927.50 (+2.28%) on business volume of €910 million. Contracts future U.S. indexes are hovering around balance after ending the day in a scattered order between the Dow Jones down 0.4% and the Nasdaq Composite up 1.8%.

The euro has reached a 22-year low

The market also welcomes the unexpected recovery in German industrial orders in May. But this trend remains volatile due to increased fears of a recession. On the other hand, at the level of the Eurozone, retail sales in May increased by only 0.2%, that is, half as much as expected. Investors are also waiting for the minutes of the last meeting of the Fed’s monetary policy committee in the evening.

In the foreign exchange market, the dollar remained steady against the euro, which hit a 22-year low against the US dollar on Tuesday, as the ECB faces historically high inflation and the risk of an explosion in yields in the most indebted euro zone. The US currency is also strengthening against the pound following the resignation of three ministers from Boris Johnson’s government, including Finance Minister Rishi Sunak.

In the bond market, the yield on the US 10-year note is steady at 2.81%, but the yield curve between the 2- and 10-year maturities has inverted for the third time this year.

On the commodity front, North Sea Brent crude recovered 1.5% to $104.10 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.

Contract in India for Alstom

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 3.4% after Air France-KLM announced an agreement with CFM International (a joint venture between GE Aviation and Safran) to purchase 200 LEAP 1-A engines to power its Airbus A 320neo and A321neo fleet. Airbus receives from its side 2.9% and Air France-KLM 1.4%.

Alstom gained 3.7% after indicating that it had received an order worth 387 million euros from Madhya Pradesh Metro Rail Corporation for metros in Bhopal and Indore in India.

Michelin rose in price by 3.1%. Barclays raised its recommendation on the tire maker’s stock from “overweight” to “overweight.” The same broker, on the contrary, lowered the rating Valeo (-0.4%) and Faurecia (-4.6%) to “line weighting” versus “overweight” for the former and from “overweight” to “underweight” for the latter.

Athos rose 6.6% and Bank of America increased its stake to 7.77% of capital and voting rights, according to a document provided to financiers by the Autorité des marchés, cited by Bloomberg.

Other technology stocks are rising as the Nasdaq rises. STMicroelectronicss gets 3.4% and World line 2%.