The Paris stock market ended the final session of the week down 0.55% at 7,163 points, penalized in particular by Eurofins Scientific (-3%), STMicro (-2.5%) and Kering (-2.1%).

The Paris index ended the week down on each of its five sessions, with a weekly decline of close to 3%.

It was against this rather gloomy backdrop that investors this morning took note of various statistics from Europe.

The HCOB flash composite PMI index for global activity in France fell from 51.2 in May to 47.3 in June, sliding well below the 50 mark (the zone that delimits growth from contraction) for the first time since January.

Marking the end of four consecutive months of expansion, the index signals a moderate downturn in French private sector activity, albeit the strongest since February 2021", points out S&P Global, which collects the data.

In addition, the HCOB composite PMI flash index of overall activity in the eurozone fell from 52.8 in May to 50.3 in June, its lowest level since January, signalling a very sharp slowdown in the region's economic growth in June.

With two consecutive quarters of GDP contraction in Q4 2022 and Q1 2023, the eurozone has entered a technical recession.

And while a rebound is expected in the second quarter, investors are well aware that the mounting negative effects of monetary tightening are likely to cause growth to falter thereafter.

The US economy is also under the threat of recession, amid fears that the Fed's repeated interest rate hikes will penalize activity.

Growth in the US private sector slowed markedly in June, according to S&P Global, whose composite PMI for the month came in at 53.0 (flash estimate), compared with 54.3 in May.

The Conference Board, a New York-based employers' organization, had warned yesterday that it expected a recessionary episode in the US between the third quarter of 2023 and the first quarter of 2024.

The week ended with a spectacular easing in European yields, with OATs down 15pts to 2.874% and Bunds down 14pts to 2.345%.
US T-Bonds, on the other hand, were only down 4pts to 3.725%, boosting the dollar (+0.65% against the euro) to $1.0890/euro.

In French company news, Capgemini announces that it has signed an agreement to acquire BTC Corporation in Japan, to 'strengthen its cloud and digital capabilities in the country in order to meet demand for services across the entire value chain'.

SES-imagotag falls -58% (to 69.8E) after a suspended session following accusations of accounting irregularities by activist fund 'Gotham City Research'.

Vallourec announces the signature, on June 19, of a Memorandum of Understanding (MoU) with the Saudi Arabian Ministry of Investment (MISA) for the expansion of its activities in Saudi Arabia, including the increase of its local presence and the deployment of its latest innovations in energy transition, additive manufacturing and the circular economy.

As part of the development of its public works/water sector, Samse announces that it is in advanced and exclusive discussions with Gemoise, a distributor of materials for construction and public works.

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