CAC40: clinging to 8,000, US figures still very robust

(CercleFinance.com) - The Paris Bourse is up +0.
3%, and the CAC40 seems to be holding on fairly well above the 8,000 mark.
The Euro-Stoxx50 is giving itself back some breathing space (+0.2% to 4,925), just above its average support (with Frankfurt holding back).
Gains in Europe are tending to taper off after the release of numerous economic indicators in the afternoon, which came out 'stronger than expected'.
This did not affect Wall Street too much at the opening, with the Dow Jones up in line with expectations (+0.4%)... the S&P500 was content with +0.1% and the Nasdaq remained heavy with a -0.2% decline to 15,650.
Wall Street had continued to consolidate on Wednesday, with investors once again massively selling off technology stocks, led by semiconductors... and things didn't get any better on Thursday, with AMD or Nvidia down -1%, Applied Materials down -1.5% after just a few minutes of trading (note the -4.5% fall in Taiwanese giant TSMC).
We believe that the artificial intelligence craze is now over, and recommend greater exposure to cyclical and value stocks", wrote Danske Bank this morning.

Today's UD macroeconomic data will also fuel fears that interest rates will remain high for longer than previously expected.
The 'Philly FED' index, calculated by the Philadelphia Fed, climbed 12 points to 15.5 in April, its third consecutive positive figure and its highest level since April 2022... while the consensus was for a decline of -1.5Pt.
'Nearly 38% of manufacturing companies reported an increase in overall activity this month, while 22% reported declines; 40% reported no change', say the surveyors.

They added that the new orders index rose by seven points in April, its second consecutive positive figure, and that the current deliveries index increased by eight points to 19.1.

The number of registered unemployed remained stable at 212.000, while a weekly increase in the number of claimants was expected.

The Conference Board's leading indicators remain to be seen, and will provide a better gauge of the country's growth prospects: IMF boss Kristalina Georgieva has revised upwards the outlook for the USA, which is accumulating record levels of debt.

On the bond market, the situation remains calm, with the yield on 10-year US Treasuries, which had reached five-month highs on Tuesday, stabilizing at 4.60%
European Treasuries are falling back towards their annual lows, with the yield on the German Bund up +1.5pts to 2.4860%, and the yield on OATs (+2pts) back above the 3.00% mark, with an intraday 'peak' at 3.029%.

Oil prices are stabilizing, caught between yesterday's data showing a rise in US crude inventories and a geopolitical climate that remains very tense, not to mention a call for a boycott of Venezuelan oil from the USA.

In London, Brent crude recovered timidly by 0.3% to $87.6 a barrel, while U.S. light crude (WTI) advanced by just over 0.6% to $83.2.
Gold is still holding firm, with the ounce holding steady at $2,380.

On the value side, Danone announced sales of 6.79 billion euros for the first quarter of 2024, down 2.5% due to strongly negative scope (-5%) and currency (-3.2%) effects, and despite a positive contribution of +1.7% from hyperinflation.

Forvia reported first-quarter 2024 sales of 6.53 billion euros, down 1.7% on a reported basis but up 3.1% organically, outperforming global automotive production by 390 basis points.

For the first quarter of 2024, Edenred reported total revenues of 685 million euros, up 21.4% (+20.5% on a comparable basis), including operating sales of 625 million, up 18.8% (+16.9% on a comparable basis).

Barclays renewed its 'overweight' recommendation on Air Liquide on Thursday, while raising its target price for the stock from 190 to 220 euros.

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