(CercleFinance.com) – Black day on the Paris stock market, where the CAC40 fell 2.28% to 5783 points, close to the lowest level since the beginning of the year (5756 points). The Paris index shows a weekly decline of 4.7%.
The decline accelerated this morning following the release of the latest PMI survey on private sector activity in Europe.
The Euro-Stoxx50 and DAX fell by more than 2.1% and 1.8% respectively as investors were stunned by the latest European PMIs.
The London Stock Exchange also lost ground with a fall of -1.8%.
The contraction of the Eurozone economy deepened in September, against the backdrop of heightened inflationary pressures.
The latest PMI survey released by S&P Global on overall activity in the region thus fell to 48.2 this month, from 48.9 in August, the research office said: a new 20-month low.
Still, in France, a preliminary composite index measuring overall activity in France rebounded to 51.2 this month, up from 50.4 in August.
However, according to analysts, a break of 5,980 points on CAC could herald a return to the lower threshold of 5,795/5,800 points, which in turn could lead to a pullback of the annual threshold of 5,750 points, acting as a ‘pull force’ to use the words of the Kiplink Finance teams .
In New York, U.S. equity markets are down -1.4% to -1.6% as rates continue to tighten: The U.S. 10-year T-bond jumped to 3.80% this morning, the highest since the 2008 financial crisis, but the decline Wall Street is fueled by some ‘risk-on’-motivated buying and the yield falls back to 3.71% (unchanged).
Inflation, which is slowly normalizing, remains a major source of concern for the Federal Reserve, at the risk of dragging the economy into recession.
One of the ‘facts of the day’ is the new record set by the dollar (+1.4%) around 0.9700 against the euro… which invites us to question both the geopolitical context and the economic outlook.
The yield of our OATs still rose to around 2.67% and Bunds to 2.11% (a 9-year record), but the fear of new dramatic developments on the geopolitical front (large mobilization in Russia) also encourages arbitrage in favor of the asset. a safe haven.
Our OATs are back by 2.58%, Bunds by 2.02%, or +4 points ‘only’ (compared to +13 this morning).
Italian BTPs do not benefit from this with a deterioration of +11 points to 4.31% (high 4.367%), investors fear that the EU will take retaliatory measures if Italians ‘vote badly’, as Ursula von der Leyen stated in the half – in other words, in an attempt to interfere with the democratic voting in Europe with serious and unprecedented threats.
The day was also marked by the publication of the US PMI, which remains anchored in the danger zone, confirming the reality of the recessionary threat across the Atlantic.
The U.S. private sector slowed its contraction slightly in September as orders returned to growth, according to a PMI survey released Friday by S&P Global.
The composite index was 49.3 this month, compared to 44.6 in August, but it is still in the contraction zone.
In the services sector, the ‘flash’ PMI rose sharply to 49.2, after 43.7 in August, well above the consensus target of 45.
The manufacturing PMI rose to 51.8 from 51.5 last month, again beating economists’ projections that had targeted an average of 51.3.
For Chris Williamson, chief economist in charge of research, these figures – and in particular the modest growth in new orders – are likely to ease concerns about the current pace of the economic slowdown.
On the value side, with rising rates, the automotive sector fell by -11.5% on Faurecia, -10.2% on Valéo, -7% on Renault.
This morning, L’Oréal announced 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.
Gilles Pélisson, President and CEO of TF1 Group, will propose to the Board of Directors on October 27, 2022 to appoint Rodolphe Belmer as CEO. Gilles Pélisson will thus become chairman of the board of directors of the group until the closing of the accounts for the year 2022, on February 13, 2023, the date when Rodolphe Belmer would be proposed as chairman and CEO of the TF1 group.
For its part, the share of M6 takes over 8%, driven by speculation about a possible takeover of the television channel after the failure of its merger project with TF1.