(CercleFinance.com) – The Paris stock exchange lost 1.40%, to 6,358 points (with 3.5 billion euros exchanged, which remains very modest), at the end of a session marked by announcements from the European Central Bank (ECB ), about its monetary policy strategy.
The reception was cool in all compartments: sharp fall in bond markets (worst levels everywhere since the beginning of 2014 in March of the same year) and decline in the stock markets on a broad front with -1.7% for the Euro- Stoxx50 and the DAX40.
The ECB has announced that it is lowering its forecast for growth in the Eurozone, now targeting 2.8% for 2022 then 2.3% in 2023. In addition, the central bank has raised its estimates for inflation in the zone, from 5.1% to 6.8% in 2022, from 2.1% to 3.5% for 2023 then from 1.9% to 2.1% for 2024.
The institution also indicated that it would raise its key rate by 0.25% (or 0.5%?) within 6 weeks and that a second increase would be made at the start of the school year. For the time being, a ‘status quo’ on rates is confirmed, as well as the end of its regular asset purchase program (APP).
On the bond market, the trend remains heavy as evidenced by the yield of US 10-year Treasuries, still firmly anchored above the 3% mark and which adds +3.5 Pts to 3.064%.
In Europe, it was one of the worst days for 3 months with a surge of almost +10Pts in the yield of the German Bund which reached 1.445%, while French OATs (+11.2Pts) point to 1.9900% (after an 8-year zenith at 2.016% in Intraday), Italian BTPs rocketed by +15pts to 3.7100% (unheard of since the end of January 2014).
On the oil market, crude oil prices fell a little after their surge the day before, with a barrel of Brent which slackened towards 123 dollars and a ‘WTI’ which returned towards 122 dollars in New York.
Consolidation is also on the agenda across the Atlantic but the differences remain limited at mid-session: the S&P500, the Dow Jones and the Nasdaq yield between 0.3% and 0.5%… this reflects a cautious serenity on the eve of the publication of the ‘CPI’ (consumer prices), the most anticipated (and dreaded) US figure of the week (4 days before the next Fed FOMC).
In the news of French companies, Getlink, the parent company of Eurotunnel, announces that Le Shuttle transported 170,332 passenger vehicles per month in May, a number up 272% in annual comparison and therefore confirming the positive dynamic of these last months.
Still in turmoil, Orpea unveiled last night the conclusions of the external evaluation mission entrusted to two audit firms. The report confirmed the existence of ‘malfunctions’ and ‘misconduct’. Yesterday, a group of shareholders also called for ‘a profound reform of the governance and culture of the group’.
For its part, Thales presented its ‘Combat Digital Platform’, a new unified tactical system supposed to offer information superiority to soldiers in the theater of operation and, consequently, to allow them to understand, decide and act faster than the adversary. .
Finally, Soitec published yesterday evening a turnover of 863 ME for the 2021-2022 financial year, up 50% at constant exchange rates compared to the previous financial year. Consolidated net income for the 2021-2022 financial year almost tripled to reach 202 million euros.
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