Cac 40 tries to fight back but recession fears slow down, market news

Falling for most of the session, the Paris Stock Exchange is trying to stabilize after the events on Wall Street and the recovery of heavyweights like Apple or Tesla. However, the trend remains weakened by recession fears amid 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, with a barrel of Brent oil from the North Sea falling nearly 6%,

Shortly after 4:00 pm Bedroom 40 remains stable at 5,994.28 points -0.03%), after a low of 5,930.98 (-1.08%) and a peak of 6,010.87 (+0.24%) on still anemic volume business of 1.3 billion euros. In New York Dow Jones occupies 0.20%, and NASDAQ Composite gives 0.54%.

The most recent Zew indicator, the morale index of German investors and financial analysts, worsened more-than-expected to -53.8 in July, the lowest level since December 2011, from -40.5 in market estimates and -28 in June. Immediately after the release of 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 equal to parity

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

For Jim Reid, strategist at Deutsche Bank, ” CPI statistics will be the main event tomorrow, but we shouldn’t forget the start of reporting season, which should shed some light on how companies are behaving as the market flirted with the feeling that the US economy could already be in recession. “.

In this context 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. Although the shutdown of the Nord Stream 1 gas pipeline for maintenance has long been planned, it is causing some distrust, and political leaders fear that it will remain closed beyond the planned ten days, as the gas weapon represents Moscow’s leverage against Western sanctions.

EDF and Technip Energies make splits

The latest comments from Fed officials highlight the central bank’s determination to tighten monetary policy and the associated risks. Atlanta Fed Chairman Rafael Bostic reaffirmed his determination to continue tightening monetary policy and said he favors a 75 basis point Fed rate hike at the end of the month. Esther George, his Kansas City counterpart who was the only one to vote against such a hike last month, warned that hasty rate hikes could be counterproductive.

Biggest drop in SRD, Technip Energy stops at 8% due to falling more than 41% Saipem in Milan, whose capital increase of 2 billion euros has so far been only 70% signed. The final result will be known on Friday.

Unibile-Rodamco-Westfield decreased by 2.7%. RBC Capital downgraded the rating of the commercial real estate group from “online performance” to “unsatisfactory”, lowering its target price from 77 euros to 42 euros.

Arkema leaves for its part 4.3%. JPMorgan moved from neutral to undervalued in the specialty chemicals group, cutting its target price from €142 to €82.50.

Among other analyst ratings, Oddo BHF downgraded wave stone (-5.5%) from “better” to “neutral”.

Bonduelle a fall of 9.8%. The processed vegetable specialist warned that its turnover growth and its current operating margin should be below previously announced targets of +3% and +3.6% respectively, with volume and exchange rates unchanged throughout the event.

Vice versa, EDI increased by 5.5%. The French government is expected to pay more than 8 billion euros to take full control of the electrics and wants to complete the operation in the fall, Reuters reported, citing people familiar with the matter.

Thales advance payment 2.3%. The Defense Electronics Group has announced the acquisition of Dutch cybersecurity specialist OneWelcome for €100 million.