Cac 40 tries to resist, but recession fears slow movement, Market News

Falling for most of the session, the Paris stock exchange is trying to stabilize on the wave of Wall Street and the recovery of heavyweights such as Apple or Tesla. However, the trend remains dampened by fears of a recession in the face of new health restrictions in China, tightening central bank policy and possible energy shortages in Europe. Risk aversion leads to a “flight to quality” towards bonds and the dollar, while North Sea Brent falls nearly 6%,

A little after 4:00 p.m Bedroom 40 steady at 5994.28 points -0.03%), after a low of 5930.98 (-1.08%) and a peak of 6010.87 (+0.24%) in still anemic volume of business in 1, 3 billion euros. in New York, Dow Jones occupies 0.20%, while and Nasdaq Composite yield 0.54%.

The latest indicator for the day, the Zew index of morale among German investors and financial analysts, deteriorated more than expected to -53.8 points in July, the lowest level since December 2011, against -40.5 market estimates and -28 in June. Immediately after the statistics, the yield on German 10-year bonds hit 1.0824%, the lowest level since May, before returning to 1.0990%.

Euro-dollar is almost at parity

The yield on 10-year U.S. Treasuries fell 9 basis points to 2.9069%, returning below the 3% threshold ahead of the release of June U.S. consumer price statistics and two days before the first release of second-quarter U.S. bank results.

For Jim Reid, a strategist at Deutsche Bank, “ The consumer price data will be the main event of the day tomorrow, but we must not forget the start of the earnings season, which should shed light on how companies behave as the market flirts with the feeling that the US economy may already be in recession “.

Against this backdrop of risk aversion, the US currency hit a 20-year high against a basket of six other currencies, including the euro, which is flirting with parity after touching $1.0001 this morning. While the shutdown of the Nord Stream 1 gas pipeline for maintenance has long been planned, it is causing some mistrust, and political leaders fear it will remain closed beyond the planned ten days, as the gas weapon is Moscow’s leverage. western sanctions.

EDF and Technip Energies handle distribution

Recent comments by Fed officials underscore the central bank’s determination to tighten monetary policy and the associated risks. Atlanta Fed President Raphael Bostic reiterated his determination to continue tightening monetary policy and said he supports a 75 basis point rate hike by the end of the month. Esther George, a colleague at the Kansas City branch who was the lone vote against the increase last month, warned that rushing to raise rates could be counterproductive.

The biggest drop in SRD, Technip Energy stopped at 8%, driven by a fall of more than 41%. Saipem in Milan, whose €2 billion capital increase is only 70% subscribed so far. The final result will be known on Friday.

Unibale-Rodamco-Westfield decreased by 2.7%. RBC Capital downgraded the commercial real estate group from “online perform” to “underperform”, cutting its price target to 42 euros from 77 euros.

Arkema 4.3% refuse from their side. JPMorgan cut the specialty chemicals group from “neutral” to “underperform,” lowering its price target to €82.50 from €142.

Among other analyst ratings, Oddo BHF fell Wavestone (-5.5%) from “ahead” to “neutral”.

Bonduel a drop of 9.8%. The processed vegetable specialist warned that growth in its turnover and current operating margin should be lower than previously announced targets of +3% and +3.6% respectively at constant volume and exchange rates throughout the exercise.

And vice versa, EDF increased by 5.5%. The French government is expected to pay more than 8 billion euros to gain full control of the electricity company and plans to complete the operation in the fall, Reuters reported, citing people familiar with the situation.

Thales advance 2.3%. The defense electronics group has announced the acquisition of Dutch cybersecurity company OneWelcome for €100 million.