(News Bulletin 247) – The Paris Stock Exchange should start the day on a positive note on Friday morning, in a context increasingly dominated by fears around the health of the global economy.
Around 8:15 am, the ‘future’ contract on the CAC 40 index increased by 28 points to 7404.5 points, suggesting a rather favorable start to the session.
Unless there is a major change in trend, the Paris market is heading for a third consecutive week of decline. At this stage, the CAC shows a weekly loss of around 0.7%.
As a symbol of downgrading, the Parisian index broke through its major short-term support of 7375 points this week, which could herald the start of a change in configuration.
‘We will wait for a bearish extension below 7375 and 7340 points at the close, to abandon any scenario of stabilization or positive trend’, however, temper the technical analysts of Kiplink.
This last session of the week should be animated by numerous publications of macroeconomic indicators, including new data on import prices in the United States.
In the United Kingdom, the latest activity indicators should show that the British economy has managed to avoid recession this winter, at least for the moment.
In the United States, the University of Michigan consumer confidence index should have deteriorated further in May, a caution that does not bode well for consumption.
All these statistics should not fail to fuel the ongoing debate on the health of the global economy, by highlighting a situation that continues to slowly deteriorate.
On the markets, the idea that monetary tightening will cause a recession in the second half of the year is beginning to take hold, a prospect reinforced by the difficulties of the banking sector in the United States.
The US equity markets were divided Thursday evening, against a backdrop of new turbulence on financial stocks: if the Nasdaq Composite gained 0.2%, the Dow Jones fell almost 0.7%.
Highly watched, the PacWest title fell by 22.7% while the Californian bank saw its deposits melt by 9.5% over the whole of last week.
‘The headwinds continue to weigh on the world economy’, we breathe at Evli.
‘The increase in financing costs caused mainly by interest rate hikes should weigh on companies and households’, predicts the Scandinavian management company.
In this context of caution vis-Ã -vis equities, less risky assets are becoming more popular, starting with the safest government bonds such as the 10-year German Bund, whose yield has fallen to 2.22%.
After its recent records, gold began a small movement of consolidation, the ounce of yellow metal falling back by 0.2% to 2014.4 points. Its gains since the beginning of the year, however, exceed 10%.
On the oil front, crude prices do not seem to want to stabilize, with a barrel of Brent falling 0.2% to 74.8 dollars in London while American light crude (WTI) yields 0.2 % at $70.7.
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