The Paris stock market is once again heavy in the late afternoon, with a second session of consolidation.
The decline is again more than 1.4% (towards 7,300), and the CAC is approaching the 7,287 level tested this morning.
The Euro-Soxx50 is no better off, with -1.5% towards 4,340, in line with the acceleration of Wall Street's bearish trend: -0.7% on the Dow Jones, -1.1% on the S&P500 and -1.8% on the Nasdaq: -0.7% on the Dow Jones, -1.1% on the S&P500 and -1.8% on the Nasdaq.

Note also the renewed volatility on the FOREX, with a sharp fall in the Euro against the Dollar: -0.3% around 2 p.m. at 1.020, -0.8% at 5 p.m. at 1.0925.

The Dollar does not seem at all affected by the downgrading of US debt, which has lost its 'AAA' rating (by Fitch Ratings).
On the other hand, the bond market is indisposed, with yields back above 4% on 10-year T-Bonds: +7.5pts to 4.125% and over 5.50% on the '6-month'.
The FED will attempt to carry out the largest issuance program in its history, with 1.800 billion (including $1,000 billion between July and September) between now and the end of 2023, at a time when tax revenues have fallen to their lowest level since the end of 2008 (there have been several tax reforms in the meantime, very favorable to the ultra-rich).

Investors also seem to have been cooled yesterday by the PMI activity indices, which signalled the sharpest deterioration in industrial conditions in the eurozone since May 2020.

On the economic front, the ADP survey once again thwarted forecasts, with a stronger-than-expected rise in private-sector job creation in the USA: +324.000 in July, well ahead of expectations (+170 to +180,000), according to the monthly survey published this Wednesday by ADP, specialists in human resources management outsourcing.
Job creation remained robust in the leisure and hospitality sectors, while losses were recorded in industry, which suffered from the rise in interest rates.
The Dollar Index strengthened by +0.4% to 102.75 on the back of the Pound's -0.7% fall, while the southern currencies (New Zealand and Australian dollars) plunged by between -1 and -1.1%.

On the stock front, the Wall Street session will be enlivened by reports from Qualcomm, PayPal and Kraft Heinz, among others.

In European earnings news, Ferrari, Siemens Healthineers and Telecom Italia are also due to publish their accounts.

The oil market, which has been trending upwards for more than a month, fell back by -2% after the publication of US crude oil inventories: they were down to 439.8 million barrels at the end of the week of July 24 in the USA... but this was less than expected.

In French company news, Bonduelle last night reported group sales of €2,406.2 million for the 2022-2023 financial year ending June 30, 2023, up +9.2% on a reported basis and +5.0% on a like-for-like basis on the previous year.

This morning, electronics company Actia announced that it had recorded sales growth of 12.2% in the second quarter of 2023, to €150.5 million, taking its first-half total to €288.7 million, up 16.2%.

Finally, Solvay announces that its venture capital fund Solvay Ventures has invested in Compact Membrane Systems (CMS), as part of the Belgian group's ongoing efforts to 'invest in sustainable solutions and develop its offering and expertise in this field'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.