The Paris stock market ended the session down 0.58% at 7662 points, penalized by the 9.4% decline of Airbus following a downward revision of its delivery forecasts for 2024, due to supply chain problems.

The aircraft manufacturer now expects only 770 aircraft deliveries this year, compared with 800 previously, and will not reach its target of 75 aircraft per month until 2027.

The markets are also increasingly focused on political news, as we enter the home stretch before the first round of French parliamentary elections.

With the programs of the three main contenders being criticized for their "lack of realism", or even their danger to the French economy (sudden halt in activity and capital flight), investors should refrain from taking too outspoken positions.

Whatever the outcome of the election, the teams at Apicil, an asset management specialist, expect a political risk premium to persist in France over the coming year.

'Since the announcement of the dissolution, the markets have corrected sharply, but consistently', says the social protection group.

Risk-taking will remain limited on Wall Street ahead of Friday's release of the PCE price index, a measure of inflation particularly closely watched by the Fed.

On the stats front, US consumer confidence worsened in June, but to a slightly lesser extent than expected, according to the index published on Tuesday by the Conference Board.

The index for the month just ended stands at 100.4, whereas economists were expecting it to reach 100. The index for May was revised downwards to 101.3 from 102.

The sub-index of consumer sentiment on the present situation rose to 141.5 from 140.8 the previous month, but that on the future situation fell to 73 from 74.9 in May.

According to ConfBoard, the strength of the labor market is currently offsetting household concerns about the future.

Investors are also looking forward to the first debate between Joe Biden and Donald Trump, scheduled for Thursday evening, in the run-up to the presidential election in November.

On the bond front, however, the week got off to a good start, with the spread between French OATs and German Bunds narrowing to 71.5 basis points: our OATs eased -3.3pts to 3.114%, Bunds -2.2pts to 2.400%.

On the U.S. market, the yield on 10-year Treasuries remains fixed for the 3rd session at around 4.2450/4.2500%.
On the oil front, Brent North Sea crude is down -0.5% at $85.6 a barrel.

In French company news, Société Générale announces the completion of its share buyback program launched on May 27: 11,718,771 ordinary shares have been bought back by the bank for a total amount of 279.8 million euros and will be cancelled shortly.

Air Liquide plans to invest up to $850 million to build, own and operate four large modular air separation units and related infrastructure at the largest oxygen production facility in the Americas.

Capgemini reports that it has signed an agreement to acquire D+I, one of Australia's leading product design and development consultancies, with R&D laboratories in Sydney, Melbourne and Newcastle.

Finally, Spie announces that its subsidiary Spie Industrie has signed a new contract for two projects reinforcing its partnership with Haizea Breizh, a subsidiary of the Spanish Basque group Haizea Wind Group, a partnership initiated for the Saint-Brieuc offshore wind farm project in 2022.

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