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AOF France/Europe closing analysis – The CAC 40 penalized by banks and cyclicals

(AOF) – European markets fell again, with disappointing purchasing managers’ indices accentuating fears of recession. This prospect led to a sharp decline in long rates: The yield on the German 10-year bond, which serves as a benchmark in Europe, fell by 21 basis points. Consequently, while banking and cyclical stocks were neglected, growth stocks such as technology were sought after. These sectoral arbitrages enabled the CAC 40 to limit its decline: -0.56% to 5,883.22 points. The EuroStoxx50 fell 0.65% to 3442.16 points.

The title of the Italian bank Banca MPS lost 2.99% to 0.665 euro on the Milan Stock Exchange; evolving in line with the sector. The latter is penalized by the drop in long rates in Europe. On the occasion of the presentation of its strategic plan, it announced that it would raise 2.5 billion euros in fresh money to finance it. The operation should take place by the end of 2022 and the Italian State, which owns 64% of its capital since its rescue for 5.4 billion euros in 2017, will return to the pot.

Atos (+6.18% to 13.79 euros) escaped the fall in the Paris market thanks to information from BFM Business that the state would be in favor of a merger with Thales. “The ministries let Thales maneuver to create a French champion in the sector”, explains the media while the defense group, 25.7% owned by the State, has been interested in Atos’ cybersecurity activities for several months. . It would be supported by the Ministries of the Economy and the Armed Forces.

Suspended since the opening pending a press release, Valneva finally jumped 19.62% to 14.24 euros. Since the announcement Monday evening of the entry into the capital of Pfizer, the title has jumped 65%. After months of delay, it’s deliverance! The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has recommended marketing authorization (MA) in Europe of the inactivated whole-virus vaccine candidate against Covid from the Franco-Austrian biotech for use as a primary series in adults aged 18-55 years.

The macroeconomic figures of the day

In France, the “flash” PMI manufacturing index came out in June at 51. Economists were counting on 54 after 54.6 in May. The composite index, which combines services and industry, stands at 52.8. The consensus gave it at 56 after 57 in May. The services index reached 54.4 against a consensus of 57.6 after 58.3 in May.

In June 2022, the business climate in France darkens somewhat, reveals INSEE. The indicator that synthesizes it, calculated from the responses of business leaders in the main market sectors, loses two points. At 104, it remains above its long-term average (100). This deterioration in the business climate results in particular from the decline in the prospective balances of opinion in services and retail trade.

Eurozone private sector activity slowed more than expected in June, S&P Global reported. The composite index, which combines services and industry, stands at 51.9. The consensus gave it at 54 after 54.8 in May. The “flash” PMI manufacturing index came out in June at 52. Economists had forecast 53.9 after 54.6 in May. The services index reached 52.8 against a consensus of 55.5 after 56.1 in May.

In Germany, the “flash” PMI manufacturing index came out in June at 52, highlighting a more significant slowdown than expected. Economists were indeed counting on 54 after 54.8 in May. The composite index, which combines services and industry, stands at 51.3. The consensus gave it at 53.1 after 53.7 in May. The services index reached 52.4 against a consensus of 54.5 after 55 in May.

Activity in the private sector in the United States slowed in June, announced S&P Global. The composite purchasing managers’ index (PMI), which combines services and industry, stood at 51.2 after 53.6 in May. The “flash” PMI manufacturing index came out in June at 52.4. Economists were counting on 56 after 57 in May. The services index reached 51.6 against a consensus of 53.5 after 53.4 in May.

229,000 jobless claims were recorded last week in the United States against a consensus of 227,000 and 231,000, a revised figure of 229,000, the previous week.

Around 5:30 p.m., the euro lost 0.45% to 1.0519 dollars.

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