(News Bulletin 247) – Little movement at work on the main European stock markets: London painfully arrogates 0.1%, ahead of Paris (at equilibrium) and Frankfurt (-0.1%).
The session promises to be all the calmer as the doors of Wall Street will remain closed on this day of ‘Independence Day’, the national holiday of the United States.
Going into the second half of the year, the issues likely to be on the minds of market participants are well known, namely persistent inflation, faltering economies and continuing rate hikes.
In this market context deemed ‘complex’, the strategists of AllianzGI, the asset management branch of the German insurer, recommend that investors adopt a cautious approach.
“We will have to be selective, favor balanced portfolios between styles, avoid excessively indebted balance sheets, excessively energy-intensive industries and prefer companies that have shown their ability to show their prices”, explains Catherine Garrigues, director of equity conviction strategy at AllianzGI .
“We can say that US equities are now very well valued, which we believe should contribute to their underperformance by the end of the year,” underline the teams of Capital Economics.
On the statistics front, investors will have to content themselves today with the German trade balance. Thus, a total of 130.5 billion euros of goods were exported from Germany in May 2023 and 116.1 billion euros were imported into Germany according to the Federal Statistical Office (Destatis). The foreign trade balance closed with a surplus of 14 billion euros in May.
In European company news, Ryanair says it carried 17.4 million passengers in June, up 9% from June 2022 (15.9 million passengers), with a load factor of 95% , unchanged from June 2022.
Dufry announces that it has opened a new duty-paid store at Vitória airport (capital of the Brazilian state of Espírito Santo) after signing a ten-year contract with Zurich Airport Brasil.
Volkswagen announces that it wants to invest one billion euros for its growth in South America. The group aims to make ‘significant gains’ in South America with ‘a major product offensive’.
Finally, the Dutch insurer Aegon announced on Tuesday that it had finalized the merger of its activities in the Netherlands with those of a.sr, an operation which had initially been formalized last fall.
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