The Paris stock market lost 1.22% and ended the session at almost its lowest point of the day, 7406 points, penalized in particular by declines in Eurofins Scientific (-3.7%), Worldline (-3.3%) and Teleperformance (-2.6%).

This morning, investors took note of several disappointing statistics, such as the HCOB PMI index for French manufacturing, calculated by S&P Global. This fell from 46 in June to 45.1 in July, its lowest level since May 2020.

This deterioration is the result of declines in production and new orders, for the fourteenth consecutive month.

In Europe, the HCOB PMI for manufacturing, calculated by S&P Global, also fell for a sixth month, from 43.4 in June to 42.7 in July, signalling the sharpest deterioration in industrial conditions in the Eurozone since May 2020.

It also posted its lowest level since the 2008/2009 global financial crisis.

Across the Atlantic, the ISM manufacturing index fell to 46.4 in July (from 46 in June), whereas the consensus was for a stronger rebound to around 46.9.

The new orders sub-index climbed to 47.3 from 45.6 the previous month, while the paid prices sub-index rose to 42.6 from 41.8 in June.

The employment sub-index deteriorated sharply to 44.4 last month from 48.1.

Construction spending also came in below expectations, at +0.5% versus +0.7%.

The day's pleasant surprise came from the US manufacturing sector, which improved in July. The S&P Global PMI came in at 49.0 for the past month, compared with 46.3 in June.

In addition to statistics, the day was punctuated by numerous quarterly publications from American heavyweights such as Caterpillar (better than expected), Merck and Pfizer. Results from AMD and Starbucks are expected after the New York close. On the Old Continent, HSBC, BP, Diageo and Daimler presented their performances this morning.

The bond markets resumed their slide after a positive start to the session: the yield on the 10-year German Bund rose by +5.3pts to 2.518%, our OATs by +5.5pts to 3.085%, and US T-Bonds by +9.2pts to 4.05% (this morning, the yield on Treasuries was not far off 3.95%).

In French company news, Atos (-4%) announces that it has entered into a put option agreement with EP Equity Investment (EPEI), providing for exclusive negotiations to sell its subsidiary which will hold its Tech Foundations business (TFCo) following the internal reorganization currently being finalized.

Saint-Gobain reports that it has finalized the sale of CertainTeed's fence, barrier and decking business in the United States to Oldcastle APG, part of the Irish group CRH.

DBV Technologies reports a net loss of $44.8 million for the first half of 2023, compared with a loss of $39.7 million a year earlier, due to an increase in operating expenses to $50.7 million.

Finally, Lagardère announced that the management of Lagardère News, the Journal du Dimanche journalists' association (SDJ) and the unions have reached an agreement to end the strike by JDD journalists, which began on June 22 following the announcement of Geoffroy Lejeune's arrival at the head of the JDD.

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