(News Bulletin 247) – The Paris Stock Exchange is trying to rebound despite the latest announcements on the macroeconomic level which encourage caution. The CAC 40 rose by 0.3% following a decline of 0.8%

After starting the day in decline, the Paris Stock Exchange decided to wake up despite unattractive economic news. The CAC 40 regained 0.3% to 7,217.46 points and thus tried to stem a series of six declining sessions, a sequence which had then been unprecedented since October 2022. Since the start of the week, the Parisian star index concedes a little more than 1%.

The latest news published these days, however, urge caution. Earlier in the morning, operators received a new signal for a deterioration in the economic situation in Europe, with second quarter GDP growth revised down to 0.1%, where the first estimate was +0.3%.

In China, concerns are also high, especially after the announcement of a decline in Chinese exports in August, which led to a marked decline in the onshore yuan, whose trade is supervised by Beijing, to its lowest level since 2007. against the dollar.

In the United States, on the other hand, the surprise comes from an ISM of services which proved to be solid for the month of August with an index at 54.5 points, ie at its highest level since February. The “prices paid” component of the ISM index also rebounded to 58.9 points against 56.8 points the previous month, which revives fears about inflation. The market reaction was immediate, particularly in the bond market, “as investors are thinking that such strong data will force the Fed to maintain a rhetoric falconunderlines Alexandre Baradez, head of market analysis at IG France, as well as on “equity markets because if rates remain high at restrictive levels for a long time, this risks derailing the American economy, which is certainly still resilient, at some time”.

It is therefore in this context that the US Federal Reserve published its Beige Book, which revealed more modest economic activity in the United States in July and August with prospects of less strong pressure on wages in the future.

“The overall picture of the economy painted in the Beige Book argues not only for another Fed rate pause in September but likely a sustained pause at the next meeting as well, setting the stage for a ‘terminal rate ‘ which would already be reached”, adds the specialist.

Tech stocks, penalized by interest rates

The rise in bond rates weighs on technology stocks, growth groups whose valuations are by construction very sensitive to rising interest rates. On the Paris Stock Exchange on Thursday, the strongest declines were recorded by Worldline (-2.6%), STMicroelectronics (-2.5%) and Capgemini (-1.1%).

Mining stocks are not to be outdone, penalized by an agreement between the European Union and the United States on new customs duties targeting steel imports from China, according to the Bloomberg agency. ArcelorMittal thus gives back 0.9%.

Excluding the flagship index, Scor’s new “Forward 2026” strategic plan is well received. The title of the reinsurer rose by 3.4% this Thursday noon.

Valneva appreciates by 1%. Pfizer and the French laboratory communicated this Thursday positive data in children and adolescents for their vaccine candidate against Lyme disease.

Chargers, on the other hand, fell sharply (-13.2%) after having shown a plunge in its turnover and its profitability in the first half.

On other markets, the euro fell slightly against the dollar, 0.1% to 1.0711 dollar. As for oil prices, the latter are taking a short break from their November 2022 highs. The November North Sea Brent contract fell 0.5% to 90 dollars a barrel, while the October WTI listed in New York lost 0.6% to 87.03 dollars a barrel.