Cac 40 regains slight height thanks to falling gas prices, Market News

The Paris Stock Exchange recovered, dropping below daily highs. The market is supported by the end of the strike in the oil and gas sector of Norway at the call of the government, which is reflected in a slight decrease in gas prices in the Amsterdam futures market after a jump of 28% in five days. On a European level, the Stoxx 600’s distribution figure is one of the best results of the day following Amazon’s announcement of a 2% stake in Grubhub, the American food delivery subsidiary of Just Eat Takeway, which stands at 17% in Amsterdam.

mid session, Bedroom 40 added 1.55% to 5,884.90 points after a peak of 5,927.50 (+2.28%) on a business volume of 910 million euros. Contracts future American indices fluctuate around the balance after the day before ended with a spread between a fall of 0.4% in the Dow Jones and a rise of 1.8% in the Nasdaq Composite.

Euro hits 22-year low

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. On the other hand, at the eurozone level, retail sales rose by only 0.2% in May, i.е. two times less than 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 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 yield explosion among the most indebted eurozone countries. The US currency is also strengthening against the pound after the resignation of three ministers from the government of Boris Johnson, including Chancellor of the Exchequer Rishi Sunak.

In the bond market, US 10-year yields are stabilizing at 2.81%, but the yield curve between 2- and 10-year bonds has reversed for the third time this year.

In commodities, a barrel of Brent oil from the North Sea rose 1.5% to $104.10 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.

Contract in India for Alstom

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 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 won 3.7% after it announced 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 3.1%. Barclays has raised its recommendation for the tire maker from “online weigh-in” to “overweight”. The same broker, on the other hand, downgraded Valeo (-0.4%) and fauresia (-4.6%) to “line weight” against “overweight” for the first and from “overweight” to “underweight” for the second.

Athos growth was 6.6%, while Bank of America increased its stake to 7.77% 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 3.4% and world line 2%.