(BFM Bourse) – Thanks to the first convincing quarterly results in France and across the Atlantic, the Parisian market ended this session with a gain of 0.44% on Tuesday evening. The CAC 40 ends up for the fourth time in a row.
And 4! The main barometer of the tricolor rating continues a fourth session of increase. The CAC 40 ended the session with a reduced gain of 0.44% to 6,067 points after peaking at 6,139.78 points (+1.64%) at the start of the afternoon.
The Parisian market, however, benefited from the good orientation of the New York indices, Wall Street extending its gains helped by the first reassuring quarterly publications, including that of Goldman Sachs. Last of the major US banks to report, Goldman Sachs reassured the markets by reporting third-quarter earnings above expectations. The American laboratory Johnson & Johnson posted better than expected quarterly accounts, driven by the success of several of its flagship drugs.
A little balm to the heart
The first publications on both sides of the Atlantic are giving a little balm to the hearts of investors in despair at the prospect of a frank deterioration in the economic environment. Fitch is counting on growth limited to 0.5% in 2023 for the American economy, against 1.5% announced in June, according to CNN. The rating agency also anticipates a spike in interest rates from 3.5% to 5.2% in 2024.
Despite a deleterious macroeconomic context, the market is also supported by the about-face of the British government, which on Monday canceled its tax cuts announced at the end of September. On the monetary policy front, the Bank of England denied the information reported earlier by the FinancialTimes that the British central bank would consider postponing the start of its sovereign bond sales, and therefore the reduction of its balance sheet, until market conditions improve. The Bank of England therefore still intends to launch this sales program at the end of the month. In the wake of this declaration, British bond yields started to rise again before a relative easing. The 10-year rate moved to 3.945% and the 30-year rate to 4.315%.
Publicis headlining
In terms of values, Publicis, which ended up more than 2.3% after publishing net income well above expectations in the third quarter.
The automobile compartment remained well oriented, Stellantis (+1.5%) and Renault (+0.8%) benefited from the increase in sales of new cars in the European Union in September, for the second month of in a row.
The values massacred in recent weeks are taking their revenge, Orpea gained 9%, Métropole TV rose by more than 5%, Elior won 4.4%.
On the downside, Eurofins limited its decline to 2.7% while its quarterly sales fell slightly due to the very marked decline in revenue linked to Covid-19.
The veterinary laboratory Virbac for its part lost 4%, penalized by a lowering of the recommendation of Jefferies to keep versus buying previously.
Catana sank 12.7%, despite historic annual growth, but came out weaker than expected.
On other markets, the euro fell 0.14% against the dollar to 0.9830 dollar. Contracts are accelerating downward. North Sea Brent crude for December delivery dropped 3% to $88.89 while November WTI quoted in New York plunged 3.6% to $81.44.
Sabrina Sadgui – ©2022 BFM Bourse