(News Bulletin 247) – The Paris Stock Exchange is regaining some color at 7,000 points despite a further rise in sovereign bond yields on both sides of the Atlantic. The CAC 40 rose 0.4% at midday.
The Paris Stock Exchange is trying to revive itself the day after its capitulation below 7,000 points. The CAC 40 showed a slight increase of 0.4% to 7,026.77 points on Wednesday at midday, in a climate still well marked by the inexorable rise in bond rates in Europe and the United States.
The yield on the 10-year US Treasury bond is moving this Wednesday morning around 4.81%, its highest level in 16 years. In Germany, the 10-year German Bund rate is at 2.97% after exceeding 3% on Wednesday morning at 3.007%, a first since 2011.
Tuesday’s increase was explained by an increase in job openings in August in the United States, to 9.61 million units, against 8.82 million anticipated by economists, which showed that the labor market was “more resilient” than expected, according to Deutsche Bank.
Once again, the markets interpret this good news for the American economy as bad news for the financial sphere, as it gives credibility to the probability that the American Federal Reserve (Fed) will once again raise its key rates by the end of the year.
In this context, investors are feverishly awaiting the publication in the afternoon of the ADP survey on job creation in the private sector. The statistics give a small taste of the official report for the month of September which is expected on Friday.
Parrot landing
On the value side, Orange grew by 2.6%, followed by Engie (+1.9%) and Edenred (+1.7%).
Air France-KLM is stable at 11.65 euros after announcing a stake of nearly 20% in the Scandinavian airline SAS. The title of the Franco-Dutch airline also benefits from a rating from Bernstein which moved to outperformance on the file.
Atos falls by 4.2%, Yves Bernaert has been appointed general manager of the group and will have the “primary mission of carrying out the next stages of the transformation plan, and accelerating the recovery of the group’s activities”.
Parrot gives back 13.5%. The title of the drone and software manufacturer is sanctioned by the Paris Stock Exchange after announcing Wednesday morning that it expects a drop in its 2023 turnover.
On the foreign exchange market, the euro gained 0.4% against the dollar. As for oil, it is trending downward before a technical meeting of OPEC countries and its allies. A barrel of Brent from the North Sea, for delivery in December, lost 1.4% to 89.64 dollars while a barrel of WTI for delivery in November, returned 1.5% to 87.87 dollars.
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