After starting the day in the green and tickling the 6,600-point mark, the Paris Bourse completely reversed course, ending the session down 0.95% at 6,517 points, in a market increasingly deserted by investors (less than 2.5 billion euros traded since the opening) two days before the Christmas break.

Clearly, macroeconomic "good news" is turning into bad news on the US markets: US GDP came in at an annualized 3.2% in the third quarter of 2022, according to the Commerce Department's third estimate, compared with growth of 2.9% in the second estimate and 2.6% in the very first reading.

A statistic which did not prevent Wall Street from draping itself in red, with -1.4% for the Dow Jones, -1.8% for the S&P500 and -2.6% for the Nasdaq.

Also on the other side of the Atlantic, U.S. jobless claims rose by just 2,000 in the week to December 12 (to 216,000).

The Labor Department reports that the four-week moving average - considered a better indicator of the underlying trend in the labor market - showed a week-on-week decline of 6,250.250 week-on-week to 221,750.

Market sentiment now seems more constructive, with fears of missing the bull run now outweighing fears of continued policy tightening by the major central banks next year.

Note the acceleration in the 2-year yield, which rose by +5pts to 4.2650% following the GDP revision.
In Europe, long yields deteriorated again, with +6Pts on our OATs at 2.883% and on the Bund at 2.357% (same spread on Italian BTPs at 4.490%).

In French company news, Stellantis announced on Thursday that it had completed the acquisition of Hungarian software publisher aiMotive, an operation designed to enable it to accelerate its momentum in autonomous driving.

Voltalia announces the start of construction work on a 148-megawatt solar power plant in Bolobedu, South Africa, just two months after signing the CPPA with Richards Bay Minerals (RBM).

Neoen announces that it has signed a Corporate Power Purchase Agreement with TDF, an operator of digital infrastructure and networks in mainland France and the French overseas territories, for 62 MW over a 15-year period.

Finally, Orpéa hits a new all-time low (-5.3% to 5.8E) after further asset write-downs.


Copyright (c) 2022 CercleFinance.com. All rights reserved.