(CercleFinance.com) - The Paris Bourse erased its mid-afternoon losses (down -0.5% at 7.3540) and reversed course upwards for a few fractions (at 7.580), while the Euro-Stoxx50 still fell -0.9% at 4.900 (this support, broken this morning, should once again be preserved) in the wake of ASML, Europe's leading capitalization, which plunged -8% towards 900E, wiping out all its gains since June 4.

The CAC40 continues to be penalized by the plunge of Téléperformance (-10%) and the decline of EssilorLuxottica (-4.4%), Schneider and Legrand (-1.6%).
The CAC40 continues to consolidate in volumes that remain anecdotal, if not insignificant, with less than 1.3 billion euros traded at 35Mn to the close.
On Wall Street, trade tensions with China caused the S&P500 to fall -1.2 (after its 40th annual record set the previous day), while the Nasdaq plunged -2.4%.
followed in the wake of AMD (-8%), Lam Research -7.2%, Applied Materials -7% and Nvidia -5.3%.
The session was marked by the publication of a number of figures: to begin with, in the Eurozone, Eurostat confirmed its flash estimate of the end of June: the annual inflation rate in the Eurozone stood at 2.5% last month, down slightly from 2.6% in May, while that of the European Union fell from 2.7% to 2.6%.

The strongest contributions to the eurozone's annual inflation rate came from services (+1.84 percentage points, pp), followed by food, alcohol and tobacco (+0.48 pp), industrial goods excluding energy (+0.17 pp) and energy (+0.02 pp).

The lowest annual rates in the EU were observed in Finland (0.5%), Italy (0.9%) and Lithuania (1.0%), while the highest were recorded in Belgium (5.4%), Romania (5.3%), Spain and Hungary (3.6% eachе).

Across the Atlantic, US industrial production rose by a further 0.6% in June, including a 0.4% rise in manufacturing output proper (following a sequential increase of 0.9%).

Also according to the Federal Reserve, which published these figures, the capacity utilization rate in US industry improved by 0.5 points to 78.8% in June, a level which nevertheless remains 0.9 points below its long-term average (1972-2023).

The Commerce Department reported a 3% rebound in US housing starts in June compared with the previous month, to an annualized rate of 1,353,000, following a 4.6% fall in May (revised from an initial estimate of -5.5%).

U.S. housing permits - which are supposed to foreshadow future housing starts - rose by 3.4% to 1,446,000 last month. Finally, housing completions climbed by 10.1% to 1,710,000.

Our OATs stagnated at 3.0860%, Bunds also at 2.4280%, and Italian BTPs rallied +1.5pts to 3.7260.

On our side, a sharp -0.4% decline in the dollar, with the euro rising symmetrically to 1.0940 (and the '$ Index' falling -0.5% to 103.75, with the Swiss franc climbing +0.9%).

The ounce of gold continues to soar, setting a new all-time record at $2,480/Oz.

On Wall Street, the S&P500 opened slightly lower, but sector rotation could continue in favor of the Dow Jones (+1.8% on Tuesday evening, approaching the 41,000-point threshold) and the Russell-2000, which soared +3.6% (+11.5% in 5 sessions).

Economists aren't expecting much from the ECB Governing Council meeting, which is expected to keep its key rates unchanged before leaving for summer vacation.

The ECB should take time to check inflation trends before the next update of its outlook in September: our conclusion is that the ECB should not change its monetary policy before September", explains Patrick Barbe, head of bond investment at Neuberger Berman.

In company news, EssilorLuxottica announces the signing of an agreement to acquire an 80% stake in Heidelberg Engineering, a deal that will strengthen the Franco-Italian optics giant's presence in medical technologies.

Air Liquide reports that its innovative CO2 liquefaction technology, Cryocap LQ, has been selected by the city of Stockholm's energy supplier, to contribute to its bioenergy with carbon dioxide capture and storage (BECCS) project.

Finally, Pernod Ricard announces the signature of an agreement for the sale of its strategic international wine brands to Australian Wine Holdco Limited (AWL), a consortium of international institutional investors which owns Accolade Wines.


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