The consolidation phase that has been underway on the Paris market since Monday continued - and intensified - on the occasion of this 4th session of decline, with the CAC now giving up 1% (versus -1.5% mid-morning at 7,145Pts), around 7,190 points, penalized in particular by the decline of Total Energies by banks (-1.5% on BNP Paribas and Société Générale then Credit Agricole at -1.6%).
Since the start of the week, the Paris index has fallen by almost 3%, as has the Euro-Stoxx50 (-0.8% to 4,285pts).

Financial news continues to be dominated by the latest statements from Fed Chairman Jerome Powell, who clearly hinted that the central bank was not finished with rate hikes in view of persistent inflation.

As a result, the spectre of the US economy slipping into recession is becoming increasingly real, deterring investors from taking any risks.

Yesterday, at the final bell, the Dow Jones was down by 0.3%, while the Nasdaq Composite was down by around 1.2%.

"There was a rotation away from the 'FANMAGs' (Facebook, Apple, Netflix, Microsoft, Amazon and Google) and towards value sectors such as energy and industry", commented one trader.

On the statistics front, today's session will be punctuated by the release, in the USA, of old home sales, Conference Board leading indicators and weekly oil inventories.

Meanwhile, the number of jobless claims in the USA remained stable in the week to June 12, at 264,000, according to the Labor Department (the previous week's figure was in fact revised upwards from 262,000 to 264,000).

In addition, the four-week moving average - considered a better indicator of the underlying trend in the job market - shows a rise in the number of registrations by 8,500 on the previous week, to 255,750, the highest figure recorded since November 2021 (260,000).

Finally, the number of people receiving regular benefits fell by 13,000 to 1.759,000 in the week to June 5, the last week available for this statistic.

In Europe, the business climate in France remained stable in June, with the synthetic indicator calculated by Insee (based on responses from business leaders in the main market sectors) remaining at 100, its long-term average, while the indicator focusing on industry recovered from 99 to 101.

In the UK, the Bank of England's (BoE) monetary policy statement published at lunchtime confirmed expectations: the BoE added +50pts to 5%, the day after poor inflation figures (8.7% vs. 8.4% expected, core inflation up 0.3% to 7.1%) for the month of May, which left nothing else to look forward to.
And with problems flying thick and fast, UK public debt has just exceeded 100% of GDP, prompting a sharp deterioration in refinancing conditions, with 10-year Gilts yielding over 4.45% (vs. 4.402% the previous day).
Note the radical change of strategy in Turkey: the central bank is raising its key rate from 8.5% to 15%, in a quasi-Volckerian move.

The repercussions of Powell's statements (in which he deems inflation in the US to be still too high) remain limited in scope on the bond front (T-Bond at 3.77% vs. 3.722%), and the +5/-5 basis point swings continue in Europe, in "what one day does, the next undoes" mode: Bunds thus fall back from 2.43% to 2.48%.... and going nowhere.
Ditto for our OATs, which fell back from 2.958% to 3.011%, and Italian BTPs (from 4.052% to 4.103%).
The dollar continued its decline this morning, dropping below 1.1010/E and now stabilizing at around 1.0980.
In French company news, Thales reports that it has been chosen by Japan-based eVTOL aircraft manufacturer SkyDrive to supply its FlytRise flight control system for its future three-seat, zero-emission production eVTOL aircraft.

Engie says it has invested, through its Engie New Ventures venture capital fund, in TreaTech, a Swiss start-up specializing in biogas production. The energy group explains that it has closed a €9 million financing round for TreaTech.

Finally, in order to strengthen its liquidity, Casino has announced the sale of its residual stake in Assaí, i.e. 57,582,850 shares representing 11.7% of the capital of this Brazilian cash & carry retailer.

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