Market: Slight bullish bias at the start of the week

( – The main European stock markets are up slightly this morning, with Frankfurt and London up 0.3% ahead of Paris (+0.1%).

Investors took note this morning of the manufacturing PMI index for the euro zone for at least June produced by S&P Global. This fell from 44.8 in May to 43.4 in June.

It thus remained below 50.0 bar without change for the twelfth consecutive month, which also signaled the sharpest deterioration in the industrial situation in the euro area since May 2020.

The survey data highlights the weakest performance of manufacturers since the first wave of Covid19 (early 2020) in many Eurozone economies.

For its part, UK manufacturing activity recorded the biggest decline in six months in June, according to data from the S&P Global/CIPS purchasing managers’ survey (PMI). The index thus fell for the 11th month in a row to 46.5 against 47.1 in May.

Among the other macroeconomic indicators on the program for the week are the ISM service index in the US, the latest ‘minutes’ from the Federal Reserve and the US employment report.

All this data will allow market participants to build scenarios on the timing of interest rate hikes expected from the Federal Reserve, while recent statements by Jerome Powell, its chairman, have reinforced the hypothesis of at least two more rate hikes.

In the bond market, the yield on 10-year US Treasuries eased slightly to 3.81% after stretching to nearly 3.90% at the end of last week.

The German Bund with the same maturity, the benchmark real interest rate in the euro area, fell to a lesser extent around 2.39%.

In European corporate news, AstraZeneca announces positive results from a phase III trial of datopotamab deruxtecan (Dato-Dxd) in patients with locally advanced or locally advanced non-small cell lung cancer (NSCLC), metastasis treated with at least one prior therapy.

ABB announces that it will collaborate with Microsoft on the integration of the Azure OpenAI Service into the ABB Ability™ Genix Industrial Analytics and AI suite.

HSBC Asset Management today announces the appointment of Pierre Gil as Chairman of the Board of HSBC Real Estate Investment Management (REIM).

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