(Photo credits: – L. Grassin)
(CercleFinance.com) – The Paris Bourse is experiencing a saloon door sequence: the CAC40 posted losses greater than -1% on Thursday morning, before resuming everything and going marginally in the green but one hour from the close, the CAC lost again -1.1% towards 4,750 and it will have to recover 0.60% to preserve the support of 4,790 (this is not insurmountable).
Unfortunately, Wall Street seems well on its way to prolong the correction movement of the day before with a decline which widens over the minutes and now exceeds -0.3% on average.
The air gap of the leaf has done a lot of damage since beyond the river scores on the downside, the Nasdaq (-3%) and the S&P 500 (-2.4%) have pushed in important supports to middle term.
Another worrying peculiarity, the two benchmarks are preparing to post a 6th session of decline out of seven, which brings the US market back to below its levels at the end of July.
Wall Street briefly greeted around 4 pm the surge in sales of new homes in August: + 4.8% instead of -0.8% expected.
Cumulative purchases are above the symbolic mark of one million units at an annual rate (at 1.01 million), a record that dated back 14 years, at the peak of the ‘subprime’ bubble in the summer 2006.
Disappointment, however, with weekly registrations for unemployment benefits which rose to 870,000 according to figures from the US Department of Labor (against 866,000 the previous week) while the consensus anticipated only 840,000 registrations.
The four-week moving average was down 35,250 from the previous week to 878,250.
In Europe, this morning we learned of the publication of the German Ifo business climate index. The business climate in Germany improved in September for the fifth consecutive month, confirming the resilience of the euro zone’s largest economy in the face of the current health crisis.
The Ifo index – calculated on the basis of a survey of around 9,000 companies – reached 93.4 points this month against 92.5 points in August.
“In the flagship sector of the automobile, however, production still remains well below normal,” recalls the Franco-German private bank.
On the FOREX side, the Dollar continues to rise against the Euro (+ 0.2% to 1.1640) … and this firmness weighs down gold, which falls by -1.5% to 1.845 / 1.850 $ / Oz.
On the value side, the aeronautics sector is down sharply with Airbus at -3.5% and Safran at -3%.
Total plans to transform its Grandpuits (Seine-et-Marne) refinery into a zero-oil platform for biofuels and bioplastics. This transformation is being carried out as part of the group’s strategy for carbon neutrality.
Suez indicates that its board of directors has decided that a foundation, administered by a majority of representatives or former representatives of the group’s social body, will have the task of preserving the integrity of the water activity in France within the group. .
For the next four years and unless the Board of Directors of Suez decides otherwise, Suez Eau France, like its assets, will be inalienable without the prior agreement of its shareholders under certain conditions, including that of the foundation.
Despite the peak of the summer season, Air France-KLM (-7% for a new historic low close to 3E) has suffered a ‘significant deterioration since the end of August’, believes Oddo, who also mentions the low visibility on the winter season.
Due to the very high short-term volatility, Oddo finally maintains its neutral recommendation and lowers its price target to 4 euros (against 4.2 previously), or 1E (or 25%) more than the daily price.
Credit Suisse raises its price target on LVMH and raises its price target to 450 euros (instead of 425 E).