Posted on Sep 7, 2023 at 2:54 p.m.Updated on Sep 7, 2023 at 3:01 p.m.
The Paris Bourse is struggling to interrupt its series of six sessions of decline in a row, the longest since last October. Sign of the fragility of the market, the attempted jump is mainly fueled by defensive sectors such as utilities and health. Investors limit initiatives scalded by the economic slowdown in the euro zone, where second quarter GDP growth was revised to 0.1%, against +0.3% in the first approach, and the feeling that interest rates American interest should remain at a high level for a long time.
Wall Street is expected on a hesitant note before the interventions of several Fed officials before the blackout period which will begin on Saturday in the run-up to the meeting of the monetary policy committee on September 19 and 20. Patrick Harker, president of the Philadelphia branch, Austan Goolsbee (Chicago), John Williams (New York), Raphael Bostic (Atlanta) and Governor Michelle Bowman are scheduled to speak on Thursday.
Shortly after 2:30 p.m., the Cac 40 resumed and was almost stable at 7,190.24 points (-0.05%) in a business volume of 930 million euros. Futures contracts on American indices yield between 0.2% and 1.1%. Apple fell nearly 3% in pre-market. Beijing, which has already banned the use of the iPhone in government agencies, has extended this ban to many companies and state organizations, according to Bloomberg. Conversely, McDonald’s took 1% thanks to an increase in Wells Fargo’s recommendation to “overweight” the fast food giant.
The US economy remains strong
On the macroeconomic front, jobless claims fell from 13,000 to 216,000 in the United States last week, against an increase to 233,000 anticipated by the market. This figure confirms that the US economy continues to show resilience. Yesterday, the ISM index of activity in services reached in August its highest since February at 54.5 points. The employment component hit a 21-month peak at 54.7 and that of prices paid came out at 58.9, a level not seen since April. ” Leading indicators which therefore go against what the Fed is looking for, namely an easing of the job market to limit upward pressure on wages and an easing of inflation, particularly in services where it remains the most encrusted », notes Alexandre Baradez, chief market analyst at IG France.
These figures have had the effect of reigniting speculation that further monetary tightening by the US Federal Reserve by the end of the year, which continues to boost the dollar, which hit a six-month high against a basket currencies.
Basic resources and technology under attack
Mining and steel stocks show the largest sectoral decline in Europe, with the Stoxx 600 index of basic resources yielding 2.2%. The United States and the European Union are working on an agreement to impose new tariffs on excess steel production from China and other countries, reports the Bloomberg agency. ArcelorMittal notably sells 2%.
Fears about the evolution of interest rates weigh on the Stoxx 600 technology (-1%). STMicroelectronics notably loose 2.7%. STMicroelectronics is also one of Apple’s suppliers.
Airbus gains 13%. The group announced that it delivered 52 aircraft and received 117 gross orders in August 2023. In the first eight months of the year, the aircraft manufacturer delivered 433 aircraft.
Safran rose by 1.9%. JPMorgan raised its price target on the engine manufacturer from 170 to 175 euros, maintaining its opinion of “overweight”.
Rexel sells 1.6%. The electrical equipment manufacturer carried out an issue of senior bonds linked to sustainable development, unsecured and repayable in 2030, for an amount of 400 million euros. These securities have a coupon of 5.25%. The proceeds of this bond issue will be used for general Rexel purposes, including the financing of the acquisition of Wasco.
Scor advances by 3.3%. The reinsurer announced the launch of its new strategic plan, called “Forward 2026”, covering the period from 2024 to 2026 and which should allow the reinsurer to “accelerate the creation of value”.
2023-09-07 12:54:56
#Cac #teeth #setbacks #Apple #weigh #Nasdaq #York
