The Paris stock market has been holding firm for the past 90 minutes: the CAC40 has gained more than 0.4% and is attempting to reposition itself above 7,480 and even 7,500 (tested shortly before 4pm) with the support of Safran (+2.7%), Essilor (+2.5%) and Teleperformance (+2%) in particular.

The CAC40 withstood the relapse of US indices, with -1.1% on the Nasdaq (below 17,200), -0.5% on the S&P500 and the Dow Jones holding steady at +0.1/+0.2%.

Investors have discovered several major indicators in recent hours, mainly in the Eurozone: the first estimate of GDP growth for the second quarter came in at +0.3%, as for the first three months of the year (consensus +0.2%).
In France, Insee announced this morning that real GDP had risen by 0.3% in the second quarter, following a similar increase in the previous quarter, according to a first estimate... but consumption fell by -0.5% in June, despite the start of the sales season.

In Germany, growth was negative by -0.1% and German inflation came out at 2.6% for July (consensus of 2.5% after an increase of 2.5% recorded in June): this is the worst possible combination of GDP and inflation, but the differences in absolute terms remain marginal.

On a sequential basis, inflation also accelerated by 0.5% in July, following a 0.2% rise in June, beating the consensus of +0.4%.

Core inflation, which excludes volatile items such as food and energy prices, was stable at 2.9% in July.

On the other side of the Atlantic, consumer confidence in the USA improved in July, according to the Conference Board's preliminary monthly survey published on Tuesday: the index stood at 100.3 this month, compared with 97.8 in June (revised from 100.4)... which effectively means status quo.
On the real estate front, the S&P Case-Shiller index of prices in the 20 largest US metropolitan areas rose at an annual rate of 6.8% in May, against expectations of 6.5% (after 7.3% in April).

The bond markets remain unchanged, with the US 10-year unchanged at 4.175%, and the 2-year stagnant at 4.387%.
In Europe, the Bund and our OATs shed -2pts and -1.5pts respectively at 2.340% and 3.053.

The session was dominated by a number of quarterly earnings releases in Paris, Europe and Wall Street.

Procter & Gamble's accounts disappointed (the stock plunged -6% on Wall Street), and operators are hoping to make up for it with Microsoft's, which will be published this evening after the US markets close.

At the same time, the Federal Reserve's Monetary Policy Committee (FOMC) meets today, knowing that it is virtually certain that it will not change interest rates.


On the currency markets, the dollar (+0.2%) continues to rise against the euro, which is back at around $1.0803/E, pending the Fed's announcements.

Brent crude oil is stable at around $78.9 a barrel.

It's not unlikely that bad news on the ground in Israel and Lebanon will lead to an abrupt surge in prices", warns Christopher Dembik, Investment Strategy Advisor at Pictet AM. This is certainly the main point of attention in the days ahead", warns the analyst.

In other French company news, Scor reports a net loss of 308 million euros for the second quarter of 2024 (-283 million on an adjusted basis, i.e. excluding the impact of the change in fair value of the option on Scor's own shares), impacted by the 2024 review of L&H assumptions.

TotalEnergies reports that it has signed an agreement with Scatec to acquire its subsidiary SN Power, which holds stakes in renewable hydroelectric projects in Africa, as part of a joint venture with Norfund and British International Investment (BII).

Stellantis announced on Tuesday that it topped the commercial vehicle market in the first half of the year in Europe and South America, as well as in the Middle East and Africa region.


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