CAC40: up sharply, buoyed by luxury stocks
Over the past week, the CAC40 has risen by just over 0.5%, gaining almost 2% since the start of the year.
Across the Atlantic, the initial hesitation has given way to 'bargain-basement' after Thursday evening's air pocket.
The Nasdaq is back up 1.1%, the S&P500 +0.9%... however, the PPI (US producer price indexes, which predict increases in the cost of living) was not in line with expectations, and more than offset the -0.1% sequential decline in consumer prices (CPI down to 3.00% and +3.4% on a core basis).
PPI was up +0.2% overall (not a good surprise) and +0.4% in core terms (excluding food + energy).
This was to be expected, given the rise in oil prices over the past month, not to mention freight costs with the Suez Canal still neutralized.
In addition, US consumer confidence worsened more than expected in July, according to Friday's first estimate of the monthly survey results from the University of Michigan.
The confidence index fell to 66 this month from 68.2 in June, while economists and analysts were forecasting a more limited decline to 67.
Finally, in France, consumer prices rose by 2.2% year-on-year in June 2024, down slightly from 2.3% in May, according to Insee, which nonetheless revised upwards its provisional estimate for June by 0.1 points.
On the bond front, T-Bond yields remained unchanged at 4.19% (after jumping to 4.24% around 2:35 p.m.).
The consensus for a rate cut in mid-September jumped on Thursday from 75 to 90%: it would really take a series of very "robust" growth figures to call into question the scenario of 2 times -25Pts by the end of 2024 (a far cry from the 6 or 7 times -25Pts of the beginning of the year).
On the European fixed-income market, the German ten-year is trading at around 2.49% (+2.2pts), while the French OAT is at 3.15% (+2.5pts), i.e. an almost unchanged spread of 66 basis points.
But it is above all the results of the big American high-tech names that will focus investors' attention over the coming weeks.
The tech sector is expected to post the third-highest earnings growth rate of the 11 major sectors in the S&P 500 index for the second quarter, at 16.4% according to FactSet, a performance mainly due to the current dynamism of Nvidia.
The high-tech sector's results will be all the more important given the Nasdaq's string of record highs in recent weeks, which means that the accounts of the 'Magnificent Seven' will be an important valuation test in this respect.
The euro continues its bullish rally with +0.3% against the $ to $1.09/E... but it is above all the greenback that has been falling against all currencies for the past 24 hours.
Finally, in the news for French companies, Thales has announced an order for new Syracuse IV satellite communication stations for the French army's Serval armored vehicles.
Finally, on the SBF120, Atos is continuing its rebound, gaining 20% today, a gain of over 50% in the space of three sessions.
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