(CercleFinance.com) – The Paris stock market gained nearly 0.5%, around 5,950 points, as investors did not seem really relieved by the announcement of an improvement in the economic situation in the Chinese manufacturing sector, boosted by the easing of health measures and Beijing’s initiatives aimed at reviving activity.
China’s manufacturing Purchasing Managers’ Index (PMI) came in at 50.2 in June from 49.6 in May, according to data released by the State Bureau of statistics.
In the services sector, the IDA index stood at 54.7 in June, against 47.8 in May, according to the NBS.
For the record, an index above 50 points signifies an expansion, while an index below this level reflects a contraction in activity.
In France and Europe, the PMI indicators are more mixed. In France, the S&P Global PMI buyers’ index for the manufacturing sector fell from 54.6 in May to 51.4 in June, thus posting its lowest level for 18 months, pulled down in particular by a decline in new orders and production.
According to S&P Global, sharp price increases have translated into falling demand, while falling new orders and growing uncertainty have pushed production levels down.
“As companies are also worried about the evolution of their activity over the next twelve months, the level of confidence has fallen back to its lowest level since May 2020”, adds Joe Hayes, senior economist at S&P Global.
In the euro zone, the final S&P Global PMI index for the manufacturing industry stood at 52.1 in June, against 54.6 the previous month, and thus reflects the weakest expansion in the sector for 22 months.
Eurozone manufacturing conditions deteriorated at the end of the second quarter as production fell for the first time in two years, but S&P Global is seeing signs of stabilization in supply chains.
Investors are now waiting for the publication, at 4:00 p.m. in the United States, of the American ISM manufacturing index expected to be down sharply over the past month.
‘The tensions on the production chains seem too strong and persistent to avoid a frank correction of the ISM’, warn the economists of Oddo BHF.
The yield on ten-year Treasuries fell below the 3% mark, extending the decline that began at the start of the week in a context of search for quality which is explained by fears of a coming recession.
With concerns about growth, oil prices are also continuing to decline, with a barrel of American light crude (WTI) currently yielding 0.8% to 104.8 dollars, and a barrel of Brent down 5%, at $109.
In the news of French companies, Sodexo publishes revenue for its third quarter 2021-22 of 5.5 billion euros, up 23.2%, including a contribution from acquisitions net of disposals of -1.7%, more than offset by a currency effect of +6.6%.
ArcelorMittal announces that it has completed the acquisition of an 80% stake in Voestalpine’s hot briquetted iron (HBI) plant in Texas, an acquisition that values local operations at $1 billion.
Finally, Worldline indicates that it has finalized the acquisition of Eurobank’s merchant acquiring activities, Eurobank Merchant Acquiring (EBMA), card acquirer on the dynamic Greek market, with a share of 21% of transaction volumes processed in the country.
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