Market: In scattered order after the stop the day before

( – European stock markets are moving without direction this morning, Paris snagged 0.4%, ahead of Frankfurt (stable) and London (-0.4%).

The day before, European markets had suffered a sharp decline (between -2% and -3%), while bond yields soared in light of a tightening of monetary policy by the Fed.

For months, some analysts have been concerned about the ‘cognitive dissonance’ in the markets, which favors the ‘rosy’ scenario of no recession and a rapid normalization of inflation.

Investors were overtaken by monetary policy issues yesterday as US labor market data raised fears of further rate hikes by the Fed.

Additional pressure on equity markets came from the sharp rise in government bond yields, an overly strong recovery of which has often been the cause of a stock market correction in recent years.

The 10-year US is still above 4%, at four-month highs, while its German equivalent is around 2.6%, versus 2.2% a week ago.

Investors are now waiting to note one of the most fundamental indicators for the economy, namely job creation for the month of June in the United States.

Economists are hoping for a confirmation of the trend of a slowdown in the pace of job creation, but the statistics have surprised the increase after their last 14 monthly releases.

On the statistical front, German industrial production in May 2023 (actual, provisional) fell -0.2% compared to the previous month (seasonally and calendar adjusted) according to preliminary data from the Federal Statistical Office (Destatis) and +0.7% compared to same month the previous year (corrected for calendar variations).

In corporate news, the BMW Group delivered a total of 626,726 BMW, MINI and Rolls-Royce vehicles to customers in the second quarter, up +11.3% year-on-year, driven by strong sales growth in electric vehicle sales (+117 .5% at group level, +150% at BMW brand level).

Shell has published its preliminary operational indicators for the second quarter. The group says it is targeting production of between 1.65 and 1.75 million barrels per day, down from 1.88 million in the first quarter due to maintenance work carried out at several of its projects.

BAE Systems announces that it has been awarded a $37 million contract from the United States Department of Defense Ordnance Technology Consortium (DOTC) to design the Next Generation SeaSparrow Missile Launch System (NGELS).

Copyright (c) 2023 All rights reserved.

Leave a Comment