Before filling up on economic figures this Wednesday, a political point. The candidates qualified for the second round of the legislative elections next Sunday had until Tuesday 6 p.m. to confirm or not their presence on the ballot papers. As a result of the races, according to the latest count from Les Echos, some 218 candidates withdrew, mainly on the left and in the presidential camp, to limit the number of three-way races and prevent the far right from obtaining an absolute majority. A perspective that the financial markets are hoping for, which, worried about budgetary expenditure, prefer a blocked Assembly rather than see the National Rally and its allies take the reins.
The Paris Stock Exchange is expected to open higher, taking inspiration from Wall Street, even if the Cac 40 will not reach a new high, as the S&P 500 did. For the first time in its history, the American benchmark index exceeded 5,500 points on Tuesday at the close, its 32nd record of the year. And Tesla’s jump of 10.2% contributed to this. The electric vehicle manufacturer published production and delivery figures that exceeded expectations for the second quarter. American futures are currently in a stationary position, but the New York session promises to be lively today.
Powell reinforces market expectations for September
Because before celebrating the United States’ national holiday tomorrow (Wall Street will exceptionally close three hours earlier this Wednesday and will not open on Thursday), investors across the Atlantic will ingest a slew of macroeconomic information: the PMI activity index in services in June (also expected for the eurozone in the morning) and its equivalent published by the ISM, the ADP survey on job creation in the private sector, weekly unemployment claims, the trade balance and industrial orders. In another category, the publication of the minutes of the last meeting of the Federal Reserve (Fed) will be at 8 p.m. Since the European Central Bank symposium in Sintra, Jerome Powell has acknowledged that the Fed, of which he is the chairman, had made ” a lot of progress ” in managing inflation, which appears to be on a downward trajectory again, while stressing that more certainty will be needed before reducing interest rates. Comments deemed generally dovish by the market, but tempered by the higher-than-expected number of job vacancies in May. Overall, the more dovish tone prevailed and investors became slightly more confident about the prospect of easing. The probability of easing in September rose to 75% from 69%, although Powell said he would not set a specific date when asked about the timing. “, Deutsche Bank said.
This is what is allowing the Hong Kong stock market to advance, despite the slowdown in Chinese services activity in June to its slowest pace in eight months, according to the Caixin/S&P index.
New green light for Dupixent in the EU
On the value side, Sanofi has obtained validation from the European Medicines Agency for Dupixent for the maintenance treatment of uncontrolled chronic obstructive pulmonary disease (COPD) with elevated blood eosinophilia. This is the sixth indication approved for Dupixent in the EU and seventh worldwide.
RBC Capital upgrades its rating on L’Oréal from “underperform” to “perform in line with the sector”.
