(AOF) – European markets fell again, the disappointing statistics accentuating fears of recession. The CAC 40 index lost 0.56% to 5,883.22 points and the EuroStoxx50 lost 0.65% to 3,442.16 points. The situation is more favorable in the United States, where the Dow Jones gained 0.11% around 5:30 p.m.
Purchasing managers’ indices in Europe signal a deterioration in the economic situation in June, with demand being penalized by the high level of inflation.
The S&P Global composite Purchasing Managers’ Index (PMI), which combines services and industry, fell to 51.9 in June in the euro zone. The consensus gave it at 54 after 54.8 in May.
The latest PMI data is thus now in line with GDP growth of just 0.2% for the second quarter, compared to quarterly growth of 0.6% at the start of the year, with the situation also likely to deteriorate in the second. semester,” warned Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
The contraction in the volume of new orders – a leading indicator of activity and as such closely monitored – has indeed accelerated in industry. While new orders are still growing in services, these have slowed.
“We believe today’s data is consistent with our below-consensus growth outlook and our expectation of a recession,” Barclays commented.
This Composite PMI also deteriorated in the United States, falling from 53.6 in May to 51.2 in June.
These disappointing statistics led to a marked easing in the long-term rate market. The yield on the German 10-year, which serves as a benchmark in Europe, fell 21 basis points.
This evolution of the interest rate market weighed on the banks, but on the other hand supported technology and well-valued stocks, such as luxury companies. Recession fears also weighed on cyclical stocks, such as Saint-Gobain.