The end of the session is shaping up to be 'complicated', with the CAC40 now down -1.8% and directly threatening the 7,490 support level of June 16 and 28, after breaking through the 7,530 oblique support level shortly after 4pm.

No less than 100% of CAC40 stocks are in the red, and since the very first trading sessions, Dassault Systèmes has lost 5.4% after lowering its annual forecasts (see below), as have Capgemini and St Gobain (-3.8%) and BNP-Paribas (-3%).
These declines are weighing on the Euro-Stoxx50, which is now down -1.5% and in a delicate situation, in contact with the major support of 4,900pts.

"It's clear that the particular political context in France will continue to weigh on stock market momentum", warns Christopher Dembik, Investment Strategy Advisor at Pictet AM.

But we must be wary of exaggerating the impact of politics on the CAC 40's performance", says the analyst.

While the Paris Bourse has been in a tailspin recently, dropping 5% since the European elections on June 9, Wall Street continues to set record after record.

Buoyed by semiconductor-related stocks, the Nasdaq Composite set its 26th all-time record (the 6th in a row) and recently peaked at 18.510.
The S&P 500 was not to be outdone, setting its 36th record since January 1 (at 5,488)... and the Dow Jones continued to struggle with -0.3%

However, the coming days are likely to see a new bout of volatility with the publication of the latest US inflation figures on Thursday, which will be closely watched by investors.

Federal Reserve Chairman Jerome Powell is due to appear before Congress today, where he may acknowledge some progress in the fight against inflation, but warns that the Fed remains "data-dependent".

"This is usually seen as a signal that the rate-cutting cycle is about to get underway", says Christopher Dembik of Pictet AM.

According to the Fedwatch barometer, traders are currently expecting a rate cut in September, with a probability of almost 74%.

Investors are also counting on a promising crop of second-quarter results to restore some of the optimism that has characterized stock markets since the start of the year.

The season kicks off in earnest on Friday, with the accounts of major US banks JP Morgan, Citi and Wells Fargo.

According to FactSet data, analysts expect US corporate earnings to rise by 8.8% year-on-year, which would be their best performance since early 2022.

Bond markets suddenly become less confident in the late afternoon: German Bunds down +4pts to 2.5590%, our OATs +8.5pts to 3.258.
The spread with the Bund retraces to almost 70 basis points.

In French company news, Dassault Systèmes has announced that it is adjusting its annual guidance, now targeting total sales growth of between 6 and 8% (compared with 8-10% previously), as well as EPS growth of 8 to 11% (instead of 10-12%).

Saint-Gobain has announced that it has finalized the acquisition of CSR Limited, a leading player in building materials in Australia, with sales of A$1.9 billion and an EBITDA margin of around 18% for its last financial year.

Stellantis said on Tuesday that it plans to equip more models with its hybrid powertrain technology to meet growing demand from its European customers.

Saft has announced that it will supply MDA Space Ltd with more than 250 rechargeable lithium-ion batteries to power the MDA Aurora product range, which supports the transition from analog to digital satellite technology.

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