The Paris Stock Exchange regained some gains on Wednesday. The market reacted particularly to the end of the oil and gas workers’ strike in Norway, causing gas prices in the futures market in Amsterdam to fall 6.5% after jumping 28% in five days. The market also welcomed the unexpected recovery in industrial orders in Germany in May. But the trend remains fragile due to heightened 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 am Bedroom 40 added 1.48% to 5,880.39 points with a volume of transactions of 592 million. Contracts future US indices fluctuate around the balance after closing the day before in a scattered manner.
In New York on Tuesday, the Dow Jones lost 0.4%, while the Nasdaq Composite added 1.8% for the second straight session. The techies were indeed supported by the weakness seen in the bond market, fueled by a “flight to quality” during this period of inflationary tensions and monetary tightening by central banks.
Euro hits 22-year low
In the foreign exchange market, the dollar remains firm 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 a surge 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.
In commodities, a barrel of Brent oil from the North Sea rose 2.2% to $104.82 after falling nearly 10% yesterday. Meanwhile, US WTI briefly slipped below $100 before recovering. The icing on the cake was that Chinese authorities launched a new campaign of Covid-19 tests in nine districts of Shanghai, raising fears of a new wave of restrictions in the financial center.
Aeronautics in the spotlight
Therefore, fears of an economic downturn are becoming more and more insistent, and the probability of a recession in the United States next year is now estimated at 38%, according to the latest forecasts from Bloomberg Economics. In addition to the “minutes” of today’s last Fed meeting, the market is especially looking forward to the June report on US employment, which will be published on Friday.
Saffron rose 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 2.5%.
Alstom also won 3.8% after reporting that it had received a €387 million order from Madhya Pradesh Metro Rail Corporation for the metro cities of Bhopal and Indore in India.
Michelin rose by 2.6%. Barclays has raised its recommendation for the tire maker from “online weigh-in” to “overweight”. The same broker, on the other hand, downgraded Valeo (-4%) and fauresia -5.2%) to “line weight” against “overweight” for the first and from “overweight” to “underweight” for the second.
Athos growth was 5.6%, while Bank of America increased its stake to 7.7% of capital and voting rights, according to a document presented by Autorité des Marchés financiers, cited by Bloomberg.
Shares of other technology companies are rising following the growth of Nasdaq. STMicroelectronics gets 3.1% and world line 2.8%.