(News Bulletin 247) – The CAC 40 is moving down slightly on Tuesday at mid-session, as investors lack positive announcements to adopt a less cautious approach.
The Paris Stock Exchange is not beginning to rebound on Tuesday, the day after a sharp decline, the CAC 40 having lost nearly 1% the day before. The Parisian index still yields 0.23% to 7184.77 points this Tuesday at mid-session.
Like the other European indices, the CAC 40 was somewhat battered by the comments of the President of the European Central Bank, Christine Lagarde, who declared that she did not see a “peak” for underlying inflation.
The trend is also somewhat weakened by the publication on Monday of a disappointing ISM services index in the United States for the month of May.
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“The weakness in the ISM services report stood in stark contrast to other services sector numbers, raising more questions than answers about the strength of the U.S. economy ahead of next week’s Fed meeting,” notes Michael. Hewson of CMC Markets.
The US Federal Reserve (Fed) will meet on June 13 and 14, just before the European Central Bank on June 15.
“Markets are increasingly rallying to the idea that the Fed will not pass a rate hike in June before proceeding with a further hike in July,” notes Deutsche Bank.
As for values, the differences are tight, Publicis signing the largest increase in the CAC 40 with an increase of 2% while STMicroelectronics shows the largest drop with a decline however limited to 1.7%.
Safran is selling 0.5% after indicating that it is in discussions to buy certain activities from Raytheon Technologies, which could be the company’s largest acquisition since 2018.
As for the smallest caps, Biocorp jumped 15.7% after the announcement of its takeover by the Danish group Novo Nordisk.
On the other markets, the euro lost 0.3% against the dollar at 1.0686 dollars. For their part, oil contracts relapsed after being carried Monday by announcements of production cuts from Saudi Arabia. The North Sea Brent contract for August lost 1.8% to $75.35 a barrel while the July contract for New York-listed WTI dropped 1.8% to $70.80 a barrel.
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