(BFM Bourse) – Losing almost 2% after the announcement of a new acceleration in inflation in the United States, the Paris Stock Exchange finally contained its losses to 0.7% on Wednesday. Risk aversion is nonetheless very present as the US CPI index for the month of June increases the pressure on the US Federal Reserve to continue monetary tightening at a forced march.
At the cost of a last effort, the Paris star index managed to save 6000 points and limit its loss of the day to 0.73%. However, the face of the Paris market was quite different at 2:30 p.m., time of the announcement of the long-awaited (and dreaded) consumer price index for June in the United States. Around 2:50 p.m., twenty minutes after the publication of the CPI, the CAC 40 fell by -1.73% to 5,939.36 points, while the euro was once again approaching parity with the greenback.
On average, economists’ expectations put the rate of increase in consumer prices (CPI) in June at +8.8% over one year, ie 1.1% growth since the previous month. But once again, the situation as analyzed by the Bureau of Labor Statistics is proving to be more worrying than expected since the difference from one month to the next comes out at +1.3%, i.e. an inflation rate out of twelve. month of 9.1%, the highest rate since November 1981. “Core” inflation (excluding food and energy, whose prices are more volatile) is estimated at 5.9%, beyond 5.7 % expected. As a consequence, the American indices also suffered the blow, the Dow Jones yielded 0.73% to 30,756.05 points and the S&P 0.6% to 3,796.58 points at the close of European stock markets.
Between high inflation, a looming recession and the Russian invasion of Ukraine, stock and bond markets suffered particularly badly during the first half of 2022. “We don’t expect a turnaround in the short term, as long as it’s unclear when the cycle of inflation and rising rates will end,” said Stefan Kreuzkamp, chief investment officer at DWS. “Growth should remain under pressure. This will have repercussions on the evolution of corporate earnings,” he said, while DWS is revising its targets for the main stock market indices by 5 to 10% downwards.
In addition to this appointment with US inflation, operators will learn this week of the first publications of results for the period ending at the end of June. In Paris, a few companies have already got the ball rolling. Bonduelle was greatly disappointed on Tuesday by warning that its objectives for 2021-2022 (financial year ending at the end of June) would not be achieved, given the first feedback from its financial teams on the content of the fourth quarter weighed down in particular by unprecedented inflation. The title yields 0.9% the day after a heavy fall of 9.6%;
Record semester for Esker
This Wednesday, the reported results appear more encouraging. Ateme limited its gains to 1.10% by unveiling 38% growth in the first half, with a level of recurring monthly income which now reaches the bar of 2 million euros, the specialist in video compression equipment and software for the media and digital platforms reminding that the second half of the year is even more contributive. Previously called Mecelec, Altheora (+3.7%) is delighted with a 14% increase in its half-year income, while its order book has grown to 9.8 million euros.
Esker reported a new record quarter and semester (39.8 million euros for the last three months, up 19% over one year, or 76.3 million over the semester with an increase at the same rate). The document dematerialization specialist also recorded the best quarter in its history, but the Esker share ended in equilibrium at 133.80 euros after a sharp rise in the start of the session.
The promoter Kaufman & Broad for its part sells 2.3% while the company warns that it could have to revise its annual forecasts according to the decision of the Council of State on the program of rehabilitation of the station of Austerlitz but also the evolution of the economic situation.
In the rest of the micro-economic news, Waga Energy was up 4.5% on the announcement of a project selected by Séché Environnement to produce methane from waste fermentation gas from a treatment site located in Sainte-Marie-Kerque in Pas-de-Calais.
GL Events won 4.3%, sought after on Wednesday when the Lyon group was chosen by the Orleans metropolitan council to manage six event sites in Orleans, including the famous CO’Met.
In addition, EDF has asked for its trading to be suspended, pending the publication by the State of a press release (by July 19 at the latest), while the government has announced that it wants to regain control of 100% of the capital. of the group (against 84% currently).
For its part, the euro slid back towards parity before rising again to 1.0077 dollars (+0.5%). Oil prices remain below $100 at $99.29 on Brent and $95.39 on WTI.
Sabrina Sadgui – ©2022 BFM Bourse