AOF France / Europe mid-session analysis – Back to the year 2000: PMIs propel the CAC 40 above 6500 points

AOF France / Europe mid-session analysis – Back to the year 2000: PMIs propel the CAC 40 above 6500 points
AOF France / Europe mid-session analysis – Back to the year 2000: PMIs propel the CAC 40 above 6500 points

(AOF) – European equity markets start June with optimism. The CAC 40 has crossed the threshold of 6,500 points for the first time since September 2000. Investors welcome this afternoon the confirmed acceleration of manufacturing activity in Europe in May. Of course, inflation is also accelerating, but the momentum should quickly run out of steam as supply chains adjust, economists say. The markets are now waiting for the US manufacturing ISM at 4 p.m. The CAC 40 gained 0.9% to 6,503 points and the Euro Stoxx, 1.13%.

In terms of European stocks, Cnova rose 1.27% to 9.56 euros on the Amsterdam stock exchange, after the announcement this morning of a capital increase. The parent company of Cdiscount is in fact considering a placement of new shares for an amount of around 300 million euros, which could be launched by the end of the year, with the aim of financing “the international deployment. of the Group “and” to strengthen its leading technological capabilities “. It wishes to make the most of the dynamics of its marketplace and of the B2B technological services offered by its subsidiary Octopia.

Up 3.5% to 28.76 euros, Vallourec posted one of the strongest increases in the SBF 120, supported by a carrier wind. In the first place, the manufacturer of steel pipes for the energy industry is profiting, like other values ​​linked to raw materials, from the rise in oil prices. The barrel of Brent has just crossed again the symbolic threshold of 70 dollars per barrel (+ 1.99%) in the wake of the confirmed acceleration of manufacturing activity in China and Europe in May.

Exel Industries jumped 6.4% to 86.2 euros to dominate the SRD after unveiling record results in the first half thanks to strong growth. The net result amounted to 14.3 million euros against a loss of 36.4 million euros a year earlier. Last year, the group recorded a depreciation of goodwill from Agricultural Spraying of 25.9 million euros, supplemented by 2.1 million euros of additional depreciation of the stock of used machines and 0.9 million euros in non-recurring charges.

Today’s macroeconomic figures

In France, the IHS-Markit manufacturing PMI index came out in final version in May at 59.4, against a flash estimate of 59.2 and after 58.9 in April. The growth rate is at its highest level since September 2000, but “the acceleration in cost inflation has been accompanied by a near-record increase in selling prices,” IHS-Markit found.

In Germany, the unemployment rate in May stood at 6%, in line with consensus, and stable compared to April. The country had 15,000 fewer unemployed people. Economists were forecasting a drop of 9,000 after + 8,000 in April.

In Germany, the IHS-Markit manufacturing PMI index came out in final version in May at 64.4, against a flash estimate of 64 and after 66.2 in April.

In the euro zone, the IHS-Markit manufacturing PMI index came out in final version in May at 63.1 against a flash estimate of 62.8 and after 62.9 in April. Growth in the eurozone’s manufacturing sector was again at an unprecedented pace in May, with the PMI index posting its highest level ever (ie since the first release of data for the eurozone).

In April 2021, the euro area unemployment rate was 8%, down from the 8.1% rate recorded in March 2021 and up from the 7.3% rate in April 2020.

The euro zone’s annual inflation rate is estimated at 2% in May 2021, compared to 1.6% in April. Economists were forecasting + 1.9%.

In the United States, the purchasing managers’ index for the manufacturing sector in May is due at 3:45 p.m. Construction spending in April and the ISM purchasing managers index for the manufacturing sector in May will be released at 4 p.m.

Around noon, the euro was stable at 1.2229 dollars.

 
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