CAC 40: With Chinese exports falling, the CAC 40 is starting to fall again

(BFM Bourse) – The Paris index lost ground in the middle of the session, while exports from China fell more than expected in May. The market also continues to wonder about the next meetings of the major central banks.

The relays to justify a recovery on the Paris stock exchange are missing. The CAC 40 thus conceded ground on Wednesday, losing 0.5% to 7173.28 points mid-session on Wednesday, weighed down by disappointing Chinese foreign trade data.

In May, exports from the world’s second-largest economy fell 7.5%, a much steeper drop than the 1.8% decline economists had expected, according to a consensus cited by Deutsche Bank.

“The trade numbers reinforce the idea that China’s GDP is facing a sequential slowdown. But on a positive note, these numbers argue for more broad-based monetary stimulus,” SPI’s Stephen Innes analysis. Asset Management.

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Uncertain markets

Markets are also due to dissect a number of economic indicators, including German industrial production, which rose 0.3% in April against the 0.6% expected by economists polled by Reuters.

The club of rich countries, the OECD, has slightly revised its growth estimates for the euro area to 0.9% for 2023, against a previous 0.8%, and to 1.6% for the United States, against a previous 1.5%.

Investors also continue to weigh the outcome of next week’s major central bank meetings, namely those of the European Central Bank (ECB) and the US Federal Reserve (Fed).

“Markets are uncertain ahead of next week’s Fed and ECB meetings, particularly after Australia’s central bank raised interest rates again yesterday after previously announcing a pause,” Xavier said. Chapard of La Banque Postale Asset Management.

Teleperformance is catching on

In terms of values, Teleperformance is gaining slightly (+1.8%), while Royal Bank of Canada has certainly cut its price target on the title, but also reaffirmed its view of outperformance. In summary, the Canadian bank believes that the market’s fear of the emergence of generational AI, which would break the group’s activity, is exaggerated.

Atos, for its part, is yielding 0.7% after taking around 3% at the start of the session. The digital service company has upgraded its medium-term ambitions for its historical businesses.

As for small caps, Keyrus is taking off 55% to get closer to the draft simplified takeover offer announced on Tuesday, which offers a price of 7 euros per share.

Up 15% Theranexus has received the green light from the European Medicines Agency for its Phase 3 clinical trial evaluating its potential treatment for Batten disease.

In the other markets, the euro is stable against the dollar at 1.0699 dollars. Oil prices are rising slightly. The North Sea Brent contract for August delivery rose 0.5% to $76.69 a barrel.

Julien Marion – ©2023 BFM Bourse

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