2023-09-22 08:25:46
Published on September 22, 2023 at 10:25 Updated on September 22, 2023 at 10:26
In a climate of tension on interest rates, activity indices in the private sector in the euro zone continue to show weakness, which contrasts with the resilience of the American economy. The composite HCOB PMI index, a summary of the manufacturing industry and services, stood at 47.1 points in the first estimate for September, a two-month high. It nevertheless remains below the critical threshold of 50 points. In addition, the services index remained in the contraction zone for the second consecutive month at 48.4 points.
Shortly following 10 a.m., the Cac 40 lost 0.80% to 7,155.97 points in a business volume of 470 million euros.
The monetary marathon which has occupied the financial markets since September 13 also continues to weigh on the financial markets. Investors are trying to digest the prospect of persistently high interest rates on both sides of the Atlantic, even though the price of money should be close to its peak, if it has not already reached it , as notably suggested by the ECB.
Wall Street suffered a third consecutive decline on Thursday. The drop in weekly unemployment claims to their lowest since January confirmed yesterday that the labor market remains under pressure. Which is in line with a further increase in Fed rates this year following the status quo announced on Wednesday. The yield on the 10-year American bond also crossed the 4.5% mark in Asia this morning, a first since 2007.
The scenario of a soft landing does not convince
If Jerome Powell confirmed that the American economy is strong enough to allow a soft landing, many economists do not agree. The strike in the automobile sector, the rise in oil prices and the specter of an administration shutdown constitute significant risks pointing towards a hard landing.
The Bank of Japan (BoJ) kept its main key rate unchanged at -0.10% this morning, as well as its economic forecasts. It has also extended its policy of controlling fluctuations in the yield of the 10-year bond within a margin of plus or minus 0.5% around its objective of zero. The BoJ continues to count on a deceleration in inflation, even if data published this Friday show that consumer prices, excluding food and energy, increased by 3.1% year-on-year in August.
Sanofi sees foreign exchange weighing on its turnover
Sanofi lost 1.1%. The pharmaceutical group expects a negative currency effect on turnover and earnings per share of activities (or core) in the third quarter, according to preliminary estimates published this morning. It estimates this impact within a margin of 8.5% to 9.5% for EPS and 7.5% to 8.5% for sales.
Solutions 30 fell by almost 18%. The specialist in solutions for new technologies recorded a net loss of 14.4 million euros in the first half, close to that of 12.3 million over the same period last year, as it continues its development in Europe.
Profit taking continues in the automotive sector. Renault lost 2.4% and Stellantis 0.9%.
Against the trend, Hermès regained 1.2% following a fall of almost 6% the day before following a deterioration of Oddo-BHF.
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