(News Bulletin 247) – The CAC 40 is trending down at the start of the afternoon on Wednesday after the publication of the PMI indices for the euro zone. The market is also awaiting the publication of quarterly results from Nvidia this evening.

The rise at the start of the session did not hold. The CAC 40 is losing altitude this Thursday. The Parisian index lost 0.2% to 7226.74 points at mid-session on Wednesday, and may not sign a third consecutive session increase.

After several sessions without a major indicator, the markets are dissecting the flash PMI indices (first estimate), which measure the activity of the private sector. In August, the composite index (which combines services and manufacturing activity) fell back to 47, a 33-month low, against 48.6 in July. Remember that an index below 50 marks a contraction in activity.

“The continued fall in PMI data will test the ECB’s (European Central Bank) optimism for growth. Continued weakness in manufacturing could be more than cyclical. It could reveal a shock to competitiveness more persistent and structural”, analyzes Mark Wall, chief economist of Deutsche Bank.

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Nvidia on the horizon

“We expect the ECB to take a break (on its rates, editor’s note) in September, but it is not yet certain that inflation is at the level desired by the ECB. A break should not be interpreted as wrong as a peak”, he continues.

The market is also awaiting the publication on Wednesday evening of the quarterly results of the graphics card specialist Nvidia. The market reaction to this publication will test the appetite of investors for groups whose activity is linked to generative artificial intelligence, at the heart of chatbots like ChatGPT. The enthusiasm around this form of AI has driven Wall Street prices since the start of the year.

As for values, Societe Generale advances by 1%, benefiting from an increase in recommendation from Morgan Stanley to “overweight”.

Dassault Aviation takes 1.2% after obtaining certification from European and American authorities for its Falcon 6X. Virbac advances by 1.7%. The veterinary laboratory has postponed the publication date of its half-year results, due to disruptions due to the June cyberattack, and announced a share buyback program.

On other markets, the euro fell 0.3% against the dollar to 1.0812 dollars. Oil contracts fell sharply. The October contract on Brent from the North Sea lost 1.2% to 83.05 dollars a barrel, while that of the same expiry on WTI listed in New York yielded 1.2% to 78.67 dollars a barrel .