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CAC40: a brand new decline after the newest PMI surveys – 23.09.2022. at 11:24

(CercleFinance.com) – The Paris stock market continues its downward trend following the release of the latest PMI survey on private sector activity in Europe. The CAC40 index fell by 0.8% to 5868 points.

The Paris market ended yesterday’s session with a fall of 1.9%, to 5918 points, in the context of a general decline after the insulting comments made by the Fed on Wednesday evening.

At this stage of the week, the CAC shows a weekly decline of around 3.5% and the technical indicators are too weak for now to predict a positive fundamental movement, chartists warn.

According to analysts, a break of 5980 points could even predict a return to the floor of 5795/5800 points, which would likely lead to a return to the annual low of 5750 points, which acts as a ‘pull force’ to use the words of the Kiplink Finance teams.

In New York, US stock markets ended lower again on Thursday after a session where investors could see that inflation remains a major concern for the Federal Reserve, at the risk of dragging the economy into recession.

Inflation, which is slowly normalizing, therefore continues to worry Fed policymakers, pushing the dollar to around 0.98 against the euro.

Questions about the US central bank’s actions also supported Treasury yields, those 10-year notes that are now trading at their highest since the financial crisis, to more than 3.70%.

Investors took note of the latest European PMI indices. The contraction of the Eurozone economy deepened in September, amid intensifying inflationary pressures, according to the latest PMI survey published by S&P Global.

The composite preliminary PMI for total activity in the region thus fell to 48.2 this month, from 48.9 in August, the research office said. This is a new low for 20 months.

In France, the preliminary composite index measuring overall activity in France rebounded to 51.2 this month, up from 50.4 in August.

With rising energy prices, rapidly rising interest rates and slowing global growth, the Eurozone composite PMI fell below 50 points in August.

For Oddo BHF economists, this key indicator of activity “has every reason to weaken further” in September.

“The basic scenario remains a recession,” warns the private bank in a recent survey.

The day will also be marked by the publication of the US PMI, which should also sink a little further into the danger zone, which would once again confirm the reality of the recessionary threat across the Atlantic.

In terms of value, L’Oréal announced this morning the signing of an agreement to acquire Skinbetter Science, an American skin care brand. Skinbetter Science had over $95 million in revenue in the trailing twelve months to July 31, 2022.

Canadian fund Mawer Investment Management believes that Schneider’s offer for Aveva underestimates the value of the British group, according to the Financial Times. Mawer Investment Management plans to reject Schneider’s 3100p takeover bid according to the FT saying “it is an opportunistic bid that has taken advantage of the share price weakness over the past few months”. M&G Investments could also reject the offer according to the FT.

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