CAC40: lack of volume strengthens growth, $ at 1.045E – 25.07.2022 at 15:57

(CercleFinance.com) – Paris Stock Exchange remains in positive territory but sees its lead melt from +0.6% (to 6,260) to +0.3% (6,235) while Wall Street gets off to a cautious start after falling on Friday (-0.9). % for S&P500, -1.8% for Nasdaq).

There was no expected rally before the open as the Dow Jones initially fell -0.2% and the S&P fell -0.1%… and it was even more disappointing for the Nasdaq which fell -0.4%.

The Euro-Stoxx50 index is set to return to the red (below 3,600), followed by Amsterdam (-0.2%), which is down -10% from Philips.

The outperformance of the CAC40 was due to strong performances by banks and the auto sector, as well as a lack of volume, with less than €1 billion traded in Paris in 6.5 hours and order books almost deserted. the opportunity to take courses with a small initial fee.

This will soften the disappointment of the first results of “GAFAM” or the concern in the case of the “hawkish” tone of the press release of the FED on Wednesday evening.

Market participants are gearing up for a busy and potentially decisive week with a flurry of quarterly results, “statistics” (such as US GDP) punctuated by monetary policy announcements from the Federal Reserve. “It will be interesting to see how Powell tries to navigate between the need to lower inflation and support growth,” Deutsche Bank teams warned this morning.

Releases from tech heavyweights will be particularly scrutinized as investors question the strength of consumer and business demand amid the economic downturn.

Giants Microsoft and Alphabet will publish their accounts tomorrow, followed by Meta Platforms on Wednesday, followed by Apple and Amazon on Thursday.

The week will certainly be the most active of this earnings season in the United States, as a total of 175 components of the S&P 500, including 12 of the Dow Jones index, will release their numbers for the second quarter.

In France, Thursday will be a particularly tough day with results from many CAC 40 groups including Air Liquide, Capgemini, L’Oréal, Orange, Sanofi, Safran and Schneider Electric.

In fact, any surprise, one way or another, can have a big impact on the indices.

Also, the week promises to be rich in terms of economic indicators.

On Thursday, stakeholders will learn the first estimate of US GDP for the second quarter, which is expected to rise 0.5% after falling 1.6% in the first quarter.

At the peak of the week, market participants will receive the first second-quarter eurozone growth figures on Friday, as well as the latest regional inflation data, which could surprise growth again.

Bond markets are currently looking a little worse, with OATs +5 points at 1.6600%, Bunds +4.5 points at 1.0650 (OAT/Bund spread widens to +60 points vs. +30 basis points at the start of the year) . The situation improves slightly for Italian BTPs, symbolically aiming for +2 points to 3.44%, but the spread with the Bund falls below +240 points.

The euro is fairly steady, +0.4% to $1.0245, a barrel of Brent is little changed (+0.3%) at $104 in London, WTI is up +0.4% to $95.7 on the NYMEX.

In terms of shares, Faurecia (+5.5%) posted a group net loss of 296 million euros for the first half of 2022, against a profit of 146 million a year earlier, and a decline in operating margin. 2.9 points to 3.7% , but a positive net cash flow of 102 mln.

Plastic Omnium (+3%) posts H1 2022 group net profit share up 27% to €104 million, operating margin up 1.6 points to 4.6%, but free cash flow at €134 million, according to his goals.

Eutelsat Communications confirmed in a statement on Monday that it is in discussions to combine its operations with those of OneWeb to create a world leader in connectivity.

Reacting to recent market rumours, the satellite operator explains that the two companies are working on a merger project that could take the form of a share swap: this is not to the taste of investors… Eutelsat unwinds -18%.

Orange announces that it has signed a firm agreement with Masmovil to combine their operations in Spain, a transaction based on an enterprise value of 18.6 billion euros, including 7.8 billion for Orange Spain.

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