(BFM Bourse) – The flagship index of the Parisian market lost 0.24% at mid-session, the market watching for the speech of the President of the Federal Reserve.
Time seems suspended on the markets, and the CAC 40 is no exception to the trend. The Parisian index is changing little at mid-session, with a decline of 0.24% to 6,366.53 points. For now, the CAC 40 is on track to conclude on a second consecutive week of decline, losing around 2%.
Unless Jerome Powell reverses the situation at the end of the session. The Chairman of the Federal Reserve (Fed) speaks at 4 p.m. Paris time at the symposium in Jackson Hole, Wyoming.
His remarks will be watched by the entire financial community alert to the slightest signal on the next rate hikes from the American central bank.
A neat message
“I have no doubt Powell will have chosen his words very carefully today, all too aware of the consequences of any deviation from the message he wishes to convey,” said Craig Erlam of Oanda. “It’s kind of ridiculous that the markets place so much emphasis on this stuff, but that’s the situation we find ourselves in,” he adds.
According to the CME Group’s Fedwatch tool, market operators are attributing a 62.5% probability to a rate hike of 75 basis points (0.75%) at the September Fed meeting, compared to 37, 5% for a 50 basis point hike.
Although still evolving at high levels, gas prices are falling. The September contract on the Dutch TTF yields 3.6% to 310 euros per megawatt hour.
On the other markets, the euro gained 0.3% against the dollar and went back above parity at 1.0005 dollars.
Sanofi leads the CAC 40
Oil is gaining some ground. North Sea Brent crude for October delivery rose 1.5% to $100.87. The October contract for light sweet crude oil (WTI) listed on the Nymex advances by 1.2% to 93.71 dollars.
On the value side, the differences remain fairly moderate. Sanofi is at the top of the CAC 40, and takes 2.4%. The title of the pharmaceutical group was recently penalized by fears of heavy penalties in lawsuits related to Zantac, a drug used against heartburn, previously sold over the counter in the United States and Canada and withdrawn in 2019. However, According to Citi Bank quoted by Bourse Direct, an interim decision by a South Florida district judge could force up to 70,000 plaintiffs to withdraw from litigation in the multi-district federal court, without having enough time to obtain legal representation and file a lawsuit in another state court. Ultimately, this decision could lead to penalties for all the groups concerned, which would be five times lower than anticipated by the market.
The Channel Tunnel operator Getlink fell 1.4%, while Societe Generale lowered its recommendation to “hold” against “buy” previously.
Excluding SBF 120, Lacroix is driven by the acceleration of its revenues in the second quarter and gains 5.8%.
Julien Marion – ©2022 BFM Bourse