The Paris stock exchange wiped out its gains the day before, with fears of monetary tightening on the part of central banks to contain inflation taking precedence over the good reception given yesterday to the easing of monetary policy. health problems in China. Bond market tensions are weighing on technology stocks, with its Stoxx 600 index recording the second largest sector decline in Europe (-1.7%), behind the distribution (-2.6%).
Around 2.30 pm the Bedroom 40 lost 1.08% to 6,478.02 points in a small turnover volume of 880 million euros. the contracts future on US indices yields between 0.7% and 1.2%. Target nearly 8% decline in New York pre-market. The retail group, which aims to reduce inventory levels through promotions and order cancellations, lowered its operating profit forecast for the current quarter for the second time in three weeks.
Bank of Australia doubles
The yield on the 10-year US bond stands at 3.03%, after soaring above 3% on Monday for the first time since early May. Equity markets remain volatile and any attempt to recover seems doomed to failure amid fears that rising credit costs will affect corporate growth and profits. That of the German Bund of the same maturity, which serves as a benchmark in the eurozone, fell 1 basis point to 1.3110%, maintaining its highest level since 2011.
The European Central Bank is expected to announce the end of its asset purchase program on Thursday and prepare markets for a rate hike in July. It will also present its new growth and inflation forecasts. The next day, investors will learn about May inflation data in the United States, ahead of a likely 50 basis point hike in Federal Reserve interest rates next week.
This morning, the Bank of Australia raised its key interest rate by 50 basis points, twice as much as expected, to 0.85%, while simultaneously implementing its sharpest monetary tightening in 22 years.
Dassault Systèmes at the back of the cloud?
Biggest drop in the Cac 40, Dassault Systems 3% down. Jefferies lowered his recommendation on the title of the 3D design assistant software publisher from “hold” to “underperform” and lowered his price target from $40 to $33. For the broker, the group is lagging behind the industry in its shift to the cloud.
Hermes yields 2.3%, while UBS lowered its price target from EUR 1,404 to EUR 1,185.
Other way around, Valeo profit 0.9%. Valeo Siemens eAutomotive, the joint venture between the French car supplier and the German industrialist, has announced that it has exceeded its target of 4 billion euros in order intake for high voltage electrification technologies over the 2021-2022 period.
CGG 5.2% advance as Societe Generale increased its recommendation on the oil services group’s title from “hold” to “buy”.
Technip Energies gets 4%. The energy industry engineering group has announced that it has won a feasibility study contract with French company Viridian Lithium to build a lithium refining and conversion plant in France. The financial aspect of the contract has not been disclosed.
Casino loss 5.9%. The distribution group is struggling to find a buyer for its subsidiary that specializes in renewable energy production GroenGeel, BFM Business reports.