Paris: restricted decline regardless of fee at 1.85% and Brent barrel at USD 123 – 08/06/2022 at 19:31

(CercleFinance.com) – The Paris Stock Exchange closed the trading session down 0.8% to 6,448 points, down significantly for Danone (-2.8%) and Pernod Ricard (-2.5%).

The trend is essentially the same in Frankfurt (-0.8%) and the E-Stoxx50 (-0.5%), while London is down by only 0.1%.

In the middle of the session, US indices fell relatively evenly: -0.7% to the Nasdaq, -0.8% to the S&P500, -0.9% to the Dow Jones.

The “fact” of the day is the further deterioration of bond markets as the “Brent” barrel rises to $ 123 (heading for the worst closure in 2022, only needs to exceed $ 123.3) and the “WTI” exceeds $ 121 in New York.

Following Tuesday’s World Bank meeting, the OECD is again reducing its growth forecast for the world in 2022 to 3%, compared with the previous 4.5% (ie -33%) and in Europe from + 4.3% to + 2.6% (ie – 40%). … and for France it will be + 2.4% compared to 4.2%. The OECD is also revising its inflation estimate upwards to + 8.5% (+4.3 Pts).

For the record, the World Bank reduced growth in the eurozone the day before to + 2.6% and in the United States to 2.5% by 2022.

In the face of inflation, which is still very high, investors will be interested in following the ECB announcements scheduled for tomorrow. The central bank should logically show its intention to continue the process of monetary normalization, which began last December.

His board of governors is likely to decide to end its regular asset purchase program (APP) and prepare the market for rate hikes in July and September, the first in 11 years.

Investors are also anxiously awaiting US consumer price statistics, which will be released on Friday and which are also likely to consolidate market recovery or, conversely, force them to fall again.

In the US government yield market, the start of the day was marked by a new episode of tension, as 10-year government bonds rose again above the symbolic 3% (+4.5 Pts to 3.017%).

In the eurozone, our OATs add +1 point to 1.876%, Bundy also +7.2 points to 1.3590%, BTP +10% to 3.491%.

Note the key rate increase of +50 points this morning the day after Australia’s identical initiative.

In addition, the euro is gaining some value against the dollar and is now trading at $ 1.0738, while the North Sea Brent barrel has gained almost 1.4% to $ 122. Cryptocurrencies are very fond of volatility. Bitcoin fell more than 3% to $ 30,400.

In this context, investors may have noticed data on France’s trade balance this morning. This shows a deficit of almost 12.4 billion euros in April, compared with a deficit of 11.8 billion euros in the previous month, according to CVS-CJO data from the customs administration.

This slight month-on-month improvement reflects a 1.6% increase in French exports to more than € 46.7 billion, although imports remained almost stable (+ 0.4%) at around € 58.9 billion.

Across the Rhine, after a 3.7% decline in March (a revised figure from the original estimate of -3.9%), German industrial production rose 0.7% at a sequential rate in April, according to the Federal Statistical Office.

On the US side, investors noticed wholesale inventories in the United States: according to the Commerce Department, they rose gradually by 2.2% in April after a 2.7% increase in the month. (revised figure from the original estimate, which was + 2.3%).

Wholesale sales increased by 0.7% in April. At the current rate of sales, US wholesalers are taking 1.25 months to sell their inventory, up 1.23 from the previous month.

Finally, in reports of the company, Schneider Electric says it has reached an agreement with Watlow Electric Manufacturing Company, a global manufacturer of complete industrial heating systems, to sell its business to Eurotherm.

Atos fell more than 3.5%, lagging behind the trend in Paris amid unfavorable comments from Oddo BHF, who reiterated its view of “underperformance” on the name of the IT services group, despite a target price increase of 21.5 at 23 euros.

The research department believes that “the risk / reward still does not appear to be favorable to the CMD” on June 14, which he said is “subject to growing market expectations” and suggests that the valuation seems “too rich”.

Getlink on the occasion of holiday departures for the British “half time” and the platinum jubilee of Queen Elizabeth II. recorded record attendance (since the summer highs in 2020) for its Eurotunnel.

Getlink also points to a traffic that has more than doubled in the case of Flexiplus compared to 2019, and highlights the return of duty-free sales at its Folkestone and Coquelles stores following the UK’s exit from the EU.

Finally, ID Logistics announces its establishment in Italy by opening a logistics platform in Casei Gerola, located between Genoa and Milan, where 350 employees work daily (up to 500 at peak times).

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