CAC40: limited downturn, W-Street trendless, $ gains 0.3
(CercleFinance.com) - After a low shortly after the opening, followed by a +0.
4% rise this lunchtime (to 7,660), the Paris Bourse is back in the red (-0.4% to 7,590), despite the rise of Safran (+1.8%), as the index is penalized by the plunge of Edenred (-11%) and Thales (-6%), followed by Stellantis and Bouygues (-2.5%).
The Euro-Stoxx50 is up by more than 0.3% (to 4,910), but this is a "trompe l'oeil", as declining stocks dominate (particularly those on the CAC), as SAP, with its +7%, is single-handedly turning the trend into the green.
Wall Street remains hesitant, with the S&P500 and Nasdaq up +0.1% and the Dow Jones down by the same amount. The Russell-2000 stands out with +0.5%, confirming the thesis of "sector rotation" in favor of small caps.
The 'number of the day' concerns existing home sales in the USA: they fell by 5.4% in June 2024 compared with the previous month, to a seasonally-adjusted annual rate of 3.89 million, according to statistics published by the Federation of Realtors (NAR).
The median sales price of existing homes rebounded by 4.1% compared to June 2023 to reach $426,900 - the highest price ever recorded for the second month in a row and the twelfth consecutive month of year-on-year increases: housing has never been so inaccessible for the greatest number of Americans).
The stock of unsold existing homes rose by 3.1% on the previous month to reach 1.32 million at the end of June, equivalent to 4.1 months' supply at the current rate of monthly sales.
While the news of the last few days has been marked by the withdrawal of President Biden and the emergence of a candidacy by his vice-president Kamala Harris (she has officially just collected enough votes from her party's delegates to face Trump), economic and microeconomic concerns are once again taking center stage: what will growth be like in the second quarter, in the USA as in Europe, is inflation under control, what will earnings be like in the 3rd quarter?
As has been the case for the past 15 years, the 2nd quarter's results turned out to be better than expected: 80% of companies announced better-than-expected results, compared with a ten-year average of 74%.
Publications from Coca-Cola, GE Aerospace, GM and Spotify seem to be particularly popular with investors.
On the bond market, US Treasury yields reacted well to the weekend's political events, with ten-year paper easing -2.5pts to 4.234%.
In Europe, Bunds erased -4.4Pts to 2.43%, our OATs remained almost stable at 3.13% and Italian BTPs were perfectly unchanged at 3.7666%
The Dollar strengthened to 1.0850: it recovered +0.3% against the Euro, and the '$-Index' recovered +0.2% to 104.50.
Finally, Brent crude oil dropped -1.4% to $81.1 and WTI lost -1.5% to $77 on the NYMEX.
In the news for French companies, Thales reported adjusted net income (group share) for the first half of 2024, up 6% to €866 million, and EBIT up 10.4% to nearly €1.1 billion (+4.7% organic), representing a margin improvement of 0.2 points to 11.5%.
Interparfums (+17%) posted sales growth of almost 16% to 209.9 million euros for the second quarter of 2024, taking the total for the first six months of the year to 422.6 million (+7% at constant exchange rates).
Finally, Airbus, Air France-KLM, Associated Energy Group, BNP Paribas, Burnham Sterling, Mitsubishi HC Capital and Qantas Airways announce that they have co-invested in a fund to finance sustainable aviation fuel (SAF).
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