90 minutes after the reopening of Wall Street, scores remain stuck in Paris and across Europe.
The CAC40 eroded on Thursday from -0.2% to -0.3%, against the trend of the Euro-stoxx50, which gained +0.2%.
Note the underperformance of London, down -0.6% (against a backdrop of strong UK interest-rate tension), while Wall Street got off to a good start... but this was due almost exclusively to Nvidia's +26% ($385), which boosted the Nasdaq (+1.3%), and more moderately the S&P500 (+0.6%), while the Dow Jones fell by -0.2% (like the CAC).
This session was punctuated in the USA by the 1st revision of real GDP, which was revised upwards by 0.2 points to 1.3% in Q1 2023, according to the Commerce Department (which had announced a rate of 1.1% in its very first estimate a month ago).
Disappointing new home sales figures: they were barely stable in April in the USA, whereas they had been expected to rise by 0.5% (after 5.2% in March).

Without Nvidia (the stock pays 30 times sales, but analysts are revising their price targets upwards by 60-80%), investors are likely to worry that the FED is leaving open the possibility of 2 rate hikes this summer (after a pause in July). As for raising the US debt ceiling, Deutsche Bank notes that 'the latest news was not particularly promising, with House Speaker McCarthy telling reporters that there were a number of issues where negotiators were still far apart'.

The German bank also points out that, after the US markets closed, credit rating agency Fitch placed the US rating on negative watch, even though its baseline scenario remains that an agreement would be reached.

'We remain constructive on an agreement being reached in time to avoid a default on US debt, even though we expect the soap opera to continue in the very short term', also judged Libby Cantrill, Head of Public Policy at PIMCO.

In addition to France's business climate index, which was published before the opening, we also took note of new estimates for Germany's first-quarter GDP.
It fell by 0.3% in the first quarter of 2023 compared with the final quarter of 2022, according to new volume and CVS-CJO data from Destatis, whereas stability had initially been announced.

The business climate in France darkened in May, for the third month running, according to the Insee indicator, which dropped two points to its long-term average of 100. This is its lowest level since April 2021.

On the bond market, US T-Bonds deteriorated by 6pts after GDP and the yield on the 10-year bond climbed from 3.715% to 3.776%.
The heaviness is a little less pronounced in Europe, where Bunds and OATs posted +3.3 basis points to 2.485% and 3.035% respectively.
The situation remains critical on the UK fixed-income market, with Gilts seeing their yields soar +20pts to 4.41% (for the record, Italian BTPs are unchanged at 4.3200%), repeating their worst levels since the crisis at the end of September, which led to the BoE's emergency intervention and Liz Truss's resignation.

In other stock news, environmental services group Derichebourg (-8%) reported a 39.1% drop in net income for the first half of 2022-23, on sales that contracted by 12.7%.

Pierre & Vacances, meanwhile, posted a 28% year-on-year improvement in adjusted EBITDA for the first half of the year, enabling it to confirm the increase in its financial forecasts for the 2022-23 financial year, announced in April.

Eurazeo, accompanied by Trocadero Capital Partners and Bpifrance, announces a recent investment in Eowin, to pursue and accelerate the development of this document management services company.

Copyright (c) 2023 CercleFinance.com. All rights reserved.