2023-06-27 16:04:00
* In Europe, the CAC 40 gained 0.43% and the Stoxx 600 0.05% * Wall Street in the green mid-session * The US economy appeared more resilient than the markets feared * Equities rose, dollar, rates readjust PARIS, June 27 (Archyde.com) – European markets ended a turbulent session higher as a set of indicators released on Tuesday showed the strength of the U.S. economy despite monetary tightening by the Reserve Federal. In Paris, the CAC 40 .FCHI rose 0.43%, while the FTSE .FTSE in London rose 0.11%. The Dax .GDAXI, in Frankfurt, recorded an increase of 0.21%. The pan-European FTSEurofirst 300 .FTEU3 index gained 0.09%. The Stoxx 600 .STOXX and the EuroStoxx 50 .STOXX50E showed very moderate gains of 0.05% and 0.01% respectively. Most of the European stock markets started the session in the red, depressed by the “hawkish” statements of the world’s big moneymakers gathered until Wednesday at the annual forum of the European Central Bank. The publication of several better-than-expected US economic indicators, however, reversed the trend by reassuring investors about the risks of a slowdown in US activity. Consumer confidence is not eroding, while new home sales and durable goods orders are growing month on month, with consensus calling for a contraction for each of the two indicators. These data lessen the prospect of a recession which would be detrimental to risky assets, but make a further rate hike by the Fed more credible during its next monetary policy meeting in July. SECURITIES IN EUROPE The number of customers and sales volumes of the British money transfer group Wise WISEa.L were higher than expected by the markets, which hoisted the group to the top of the Stoxx 600, up 16, 4%. SES Imagotag SESL.PA recorded the best performance of the SBF120 .SBF120 for the second consecutive day, with a gain of 19.5%, the markets having found convincing the explanations of the group attacked Friday by a short seller. Aston Martin AML.L lost 9.2%, after abandoning its sales target of 10,000 vehicles in 2025 in its report published on the occasion of its investor day on Tuesday. The CAC 40 was driven by the financial sector, which would benefit from higher rates, and rose by 0.98%, while the energy sector posted the worst performance of the index against a backdrop of a fall in the oil prices, down 1.08%. A WALL STREET US stock markets were up at the close of business in Europe, also supported by solid economic indicators. The Dow Jones .DJI was up 0.46% at 1550 GMT, while the Standard & Poor’s 500 .SPX was up 0.68% and the Nasdaq Composite .IXIC was up 0.91%. RATES Short yields rose in Europe, the markets anticipating higher rates: the governors of the European Central Bank, gathered for the institution’s annual forum, thus pleaded for a more restrictive monetary policy. The yield on the two-year German DE2YT=RR rose 9.6 bps to 3.2390%, while the ten-year DE10YT=RR rose to 2.3640%, up 6.4 bps. Good US economic data wards off the risk of a recession, an unfavorable scenario for rates whose yields were advancing at the close: the ten-year Treasury US10YT=RR rose 5.3bp, to 3.7717%, while the two-year rate US2YT=RR gained 8 bp, to 4.7513%. The euro EUR= rose 0.49% to 1.0957 dollar, supported by the prospect of higher rates in Europe, while the pound sterling GBP= also advanced, to 1.2751 dollar (+0.30% ). Conversely, the greenback declined by 0.22% against a basket of benchmark currencies .DXY . OIL Oil markets remained cautious ahead of the publication at 20:00 GMT of crude inventories in the United States by the American Petroleum Institute, data indicative of the resistance of American demand. Brent lost 1.28% to 73.21 dollars a barrel LCOc1 and US light crude (West Texas Intermediate, WTI) lost 1.23% to 68.52 dollars CLc1 . TO FOLLOW WEDNESDAY JUNE 28: nL8N38J49H (Written by Corentin Chapron, edited by Tangi Salaün)
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