A new clear drop (-1.40%) affects CAC 40 this morning, after yesterday’s (already -1.40% at the close) after reports from the European Central Bank. The decline for the day drops the Paris index below 6,300 points to 6,270 points, before the long-awaited publication of inflation data in the United States. Yesterday, the ECB’s announcements largely weighed on Wall Street (-1.94%). The Tokyo Stock Exchange has just closed after five consecutive sessions on the green. The Nikkei index lost 1.49% to 27,824.29 points.
Therefore, the ECB will end its policy of buying bonds on the markets on July 1 and will raise its rates in July by a quarter of a point, saying that it does not rule out greater growth in September, if inflation does not slow down.
The day after the ECB’s decision, BdF Governor Francois Villerois de Gallo said that “a gradual increase in interest rates will rise to a neutral rate, which is estimated at 1 to 2%, possibly further.”
Another major market meeting of the week will be at noon with the Department of Labor publishing monthly consumer price indicators in the United States.
The climate worsened on Thursday on the New York Stock Exchange, which ended in a sharp decline after statements about the ECB’s “hawk” in the face of inflation and feverish expectations of inflation in the United States in May. Investors expect the beginning of stabilization of price growth, by about 8.3% for the year. Interest rates have risen further on both sides of the Atlantic in anticipation of strengthening monetary policy of the ECB and the Fed in the coming months.
At the close, the Dow Jones fell 1.94% to 32,272 points, while the broad S&P 500 fell 2.38% to 4,017 points and the Nasdaq Composite, rich in technology and biotech stocks, fell 2.75. % to 11,754 points. Among the biggest falls of the day – “technology” giants, including Meta Platforms (formerly Facebook), which lost 6.4%, Netflix (-4.9%), Apple (-3.6%), Nvidia (-3.2%) ) or Intel (-2.9%). Alphabet and Microsoft lost 2% and Amazon 4.1%.
ECO AND CURRENCY
THE UNITED STATES :
– US consumer price index. (14:30)
– Preliminary US Consumer Sentiment Index, measured by the University of Michigan. (16:00)
– The balance of the US budget. (8:00 p.m.)
– Spanish consumer price index. (09:00)
– Italian industrial production. (10:00)
This morning, the euro / dollar parity reached $ 1.0627. A barrel of Brent is trading at $ 122.63. An ounce of gold trades for $ 1,844.
Growth of values
DBV Technologies (+ 24% to € 5.20): SRD leads while the market falls. Yesterday announced the financing of direct investment totaling $ 194 million (corresponding to 181 ME).
FALL OF VALUES
Saint-Gobain (-2.45% to € 54.01) announces an investment of around C $ 90 million in its drywall plant near Montreal, Canada, to increase production capacity by about 40% and turn its plant into the first drywall with neutral carbon content. production site in North America. The new facilities will start operating in 2024. The investment, which is accompanied by unprecedented demand in a very dynamic local market, is, in particular, the electrification of the production process that uses natural gas today. When the project is completed, the power plant will be powered exclusively by green electricity.
Ruby (-0.95% to € 28.23): Management reminded the General Meeting of its vision for the Group’s development in the medium / long term. Bruno Criff (Chief Financial Officer) announced that the first quarter of 2022 started well with a gross return of 7% in distribution and 19% in trade / delivery (support and services subsegment). “The beginning of the second quarter corresponds to the gains observed in the first quarter, which is a good indication of a good growth in operating results (with the same structure) throughout the first half,” – added the manager.
Eiffage (-1.20% to € 92.88) through its subsidiaries Eiffage Génie Civil and Eiffage Senegal has won a contract with the National Water Company of Senegal (SONES) as part of a consortium for design, construction and 24-month operation. future Mamelles seawater desalination plant in Dakar, Senegal. The total amount of the contract is almost 146 million euros.
THEY PUBLISHED THEIR TURNOVER / RESULTS …
NEW RECOS FROM ANALYSTS …
Berenberg maintains Eutelsat with the target increased from 11 to 11.60 euros, and remains long on the SES, focusing on 11.20 euros.
Berenberg remains the seller of Holcim with a target price reduced to 42 Swiss francs, retains Saint-Gobain with an adjusted target of 62 to 60 euros, and retains Vicat with a target price reduced from 40 to 32 euros.
Adomos: The first period of BSA exercises starts tomorrow.
EDF: shareholders preferred to pay the balance of dividends in shares.
Wiziboat: private placement for 9 euros per share.
Advicenne: implementation of the share repurchase program.
Euroapi in SBF 120 and CAC Mid 60.
2MX Organic and InVivo have signed a final merger agreement.
OSE Immuno: 6 leading international experts on the Scientific Council.
IDI: Freeland buys Groupe Codeur.