Cac 40 recovers more than 1% as recession fears intensify, market news

The Paris Stock Exchange is recovering a slight gain at the open after the worst session the day before since the beginning of June. The market especially welcomed the surge on Wall Street, which ended above its lows on Tuesday, as well as a surprise 0.1% increase in orders for German manufacturing in May after falling 1.8% in April. But the trend looks fragile again due to growing 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.

At 9:10 am Bedroom 40 added 1.41% to 5,876.91 points.

Yesterday, Wall Street ended trading unstable: the Dow Jones shed 0.4%, while the Nasdaq Composite added 1.8% for the second session in a row. The techies were indeed encouraged by the weakness in the bond market, which is aided by a “flight to quality” in this period of inflationary tensions and tighter central bank monetary policy.

Euro hits 22-year low

In the foreign exchange market, the dollar continues to strengthen against the euro, which hit a 22-year low against the US dollar on Tuesday, as the ECB grapples with historically high inflation and the risk of an explosion in euro zone periphery 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 1.9% to $104.42 after falling nearly 10% on Tuesday. 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.

Alstom carries orders in India

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.

The largest increase Cac 40, Alstom rose 3.6% after it was announced that the company received a €387 million order from Madhya Pradesh Metro Rail Corporation for the metro cities of Bhopal and Indore in India.

Michelin rose by 2.8%. Barclays has raised its recommendation for the tire maker from “online weigh-in” to “overweight”. The same broker, on the other hand, downgraded Valeo (-1.7%) and fauresia (-2.6%) to “line weight” against “overweight” for the first and from “overweight” to “underweight” for the second.

Tech stocks are rising on the back of the Nasdaq. STMicroelectronics gets 2.2% and world line 2.5%.

Accor takes 2%. The Group has confirmed the renewal of the mandate of its CEO, Sébastien Bazin, to support the new organization of the group around two separate poles, including the “Economy, Medium and Premium” division, which includes, inter alia, the brands Ibis, Novotel, Mercure, Swissôtel and Pullman and the “Luxury” division. & Lifestyle”, bringing together brands from this universe.