(News Bulletin 247) – The Parisian index closed down 0.34% on Tuesday, as service activity deteriorated in China and oil recovered after Riyadh’s announcement of the extension of its production cuts.
And five for the CAC 40. The Paris index fell again on Wednesday, losing 0.34% to 7254.72 points, which is therefore its fifth consecutive decline.
The indicators of the day had little to offer for the market if not a reason justifying the continuation of the decline of the indices.
In China, a subject of recurring tension among investors, the PMI Caixin services index fell to 51.8 points in August against 54.1 points in July. Remember that an index of 50 marks the boundary between an expansion and a contraction in activity.
These data “highlight the fact that the economy is facing weak domestic and external demand”, underlines Craig Erlam of Oanda.
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In the euro zone, the composite PMI index (which includes services and manufacturing activity) stood at 46.7 in August according to a second estimate from S&P Global. This marks a deterioration compared to the figure of 47 of the first estimate.
“We continue to forecast a recession in the second half,” concludes the think tank Capital Economics in light of these data.
The other highlight of the session remains the jump that oil prices experienced after Saudi Arabia announced the continuation of its production cuts for three months. Russia has specified that it will maintain its export cuts until the end of the year.
The rise in black gold, however, has fallen into line. The North Sea Brent crude contract advanced 0.97% to $89.86 a barrel, after rising above $90 during the session for the first time since November. That of October on the WTI quoted in New York advances by 1.4% to 86.71 dollars a barrel. This brings in particular the TotalEnergies share, which rose by 2%, the biggest rise in the CAC 40. The stock also came close to its all-time highs during the session. Schlumberger for his part took 2.2%.
Also note the return of American operators after a long extended weekend, Wall Street was indeed closed on Monday for Labor Day.
Crédit Agricole SA mined by Goldman Sachs
On values, Renault is up 1.6% while the diamond brand is aiming for a valuation of 8 to 10 billion euros for Ampere, its 100% electric subsidiary during its IPO scheduled for next year.
Sanofi gained 1%, benefiting from the support of Berenberg who raised his recommendation to buy the stock on Tuesday morning.
Highly exposed to China, luxury stocks were penalized by the latest statistics published on Tuesday. Kering lost 2.2%, LVMH lost 1.8%.
Crédit Agricole SA dropped 2% weighed down by a degradation of advice to “sell” from Goldman Sachs.
Excluding the flagship index, SES-Imagotag lost 1.3% as the electronic label specialist said it had been selected by Lapeyre to deploy its Vusion IoT Cloud cloud computing platform and its smart labels in the 132 French stores of the home renovation sign.
Alten (+3.6%) was supported by an initiation of hedging on the part of Stifel.
On currencies, the euro lost 0.8% against the dollar at 1.0714 dollars.
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