Cac 40 returns to the 6000 point threshold, raw materials return, market news

The Paris Stock Exchange continues to rebound on Thursday morning after a small rise on Wall Street yesterday, even if concerns about the outlook for the global economy persist. The market is indeed torn between growth fears and the hope that central banks will show restraint on the scale of the next rate hike. At European level, 19 Stoxx 600 sector indices are in the green, starting with Automotive (+3.1%), Basic Resources (+3%), Oil & Gas (+2.5%) and Technology (+2.5%) ). Total Energy growth 2.1%, stellantis 4.3% and STMicroelectronics 2.3%.

Around 10 o’clock in the morning Bedroom 40 increased by 1.63% to 6,008.69 after a peak of 6,013.34 (+1.7%) points on a business volume of almost 400 million euros.

Not surprisingly, the “minutes” of the Fed’s latest monetary policy committee meeting reflect the US central bank’s determination to contain inflation, albeit at the cost of slowing activity. Paul Ashworth, Chief U.S. Economist at Capital Economics, nonetheless notes that “ much has changed over the past two weeks with a sharp recovery in prices across a wide range of commodities as fears of a significant slowdown in global economic growth intensified..

Between 50 and 75 basis points is 50-50

For him, whether the Fed will raise rates by 75 basis points this month, or vice versa by 50 basis points back, will depend on the following data, and in particular on the June jobs report (expected Friday) and consumer prices for the same month (expected in next Wednesday). He added that immediately after the June meeting comments from Fed officials suggest that a 75 basis point rate hike was the most likely option at the end of July. But recent events show that there is a 50-50 chance of a 50 or 75 basis point tightening. “.

The European Central Bank will take over this Thursday by publishing the minutes of the latest meeting of its Governing Council, scheduled to announce a 25 basis point cut in key rates for July. These protocols may also be relevant to discussing the development of an instrument designed to limit the risks of fragmentation between the heart and periphery of the eurozone.

STMicro grows thanks to Samsung sales

In commodities, a barrel of Brent North Sea crude is trading just above $100 at 101.30 after falling more than 10% since the start of the week.

In the bond market, the yield on 10-year US bonds rose slightly to 2.93%%, but remains below the yield on 2-year bonds. In the foreign exchange market, the euro is approaching parity with the US dollar at $1.0187, thus remaining at a two-year low.

STMicroelectronics increased by 2.3%. Like other players in the sector, the company benefited from Samsung’s 21% revenue growth in the second quarter. These figures exceeded all expectations and somewhat eased concerns about the strength of demand for chips.

ArcelorMittal a 3.6% rise thanks to a recovery in iron ore prices, which lost almost a quarter of their value in the second quarter, weakened in particular by the Chinese authorities’ Covid zero policy.

check rose 2.6%, helped by a report from RBC that took over the reinsurer’s coverage with “superior performance” and was aiming for 26 euros.

Eurasian receives 1.4%. The investment company sold its stake in Reden Solar to a consortium led by Macquarie Asset Management, based on an enterprise value of 2.5 billion euros.

EDI caught his breath (+0.7%) after jumping 14.5% on Wednesday. The energy company and the state, which intends to nationalize the energy company, have decided to immediately begin the succession process for CEO Jean-Bernard Levy, the group said.