The Paris stock market ended the session with a limited decline of -0.09%, to 7202 points, despite strong performances from URW (+3.3%), STMicro (+3.2%) and Teleperformance (+2.1%).

Limited volumes (barely 2.6 billion euros traded during the session) reflected investors' cautious attitude. Moreover, there was no reaction to the OECD's adjustment of its forecasts for the world (raised from +2.6% to +2.7), Europe (from +0.1% to +0.9%) and the United States (from +0.1% to +1.6%).

On the other hand, China, which is forecast to fall from 5.3% to 5.4%, may not achieve its 5.5% target, and its outlook for 2024 remains mediocre at +5.1%.

Over the next few weeks, the market is likely to remain volatile as we await clearer indications of future developments", predicts Gilles Guibout, Head of European Equities at AXA IM.

Nevertheless, for the time being, it seems very difficult to predict where the next growth driver will come from.

The markets also remained impassive after the publication of the US trade balance: the deficit widened by +23% in April, reaching $74.6 billion, compared with $60.6 billion in March (revised from the $64.2 billion announced last month), according to the Commerce Department.

This increase in the deficit is the result of a 3.6% drop in exports of goods and services, to $249 bn, and a 1.5% rise in imports of goods and services, to $323.6 bn.

In France, the trade balance held steady at -E9.2 bn in April 2023, as a three-month moving average, according to the Direction Générale des Douanes. Imports and exports both fell by 0.2 bn euros to 59.3 bn euros and 50.1 bn euros respectively.

On the bond front, yields deteriorated more sharply this evening: OATs +6pts to 2.983%, Bunds +7.5pts to 2.438%, Italian BTPs +6pts to 4.25%.
In New York, T-Bonds also gained +7pts to 3.77% (the Bank of Canada raised rates to everyone's surprise) and across the Channel, another bad session with Gilts +6.5pts to 4.2700%.
Gold is down -0.7% at 1948$/ounce.

In French stock news, TotalEnergies announces the doubling of production of Sustainable Air Fuels (SAF) at its Grandpuits site, bringing production capacity to 285,000 tonnes a year, almost double the capacity announced for 2020.

As of May 2023, Airbus has delivered 63 aircraft to 36 customers. Gross orders for the month of May 2023 stand at 17.

STMicroelectronics and Sanan Optoelectronics, a market leader in compound semiconductors in China, today announced the signing of an agreement to set up a new joint venture for the manufacture of 200 mm diameter silicon carbide components in Chongqing, China.

STMicroelectronics and Sanan Optoelectronics, a market leader in compound semiconductors in China, announced today that they have signed an agreement to create a new joint venture to manufacture 200 mm diameter silicon carbide components in Chongqing, China.


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