(BFM Bourse) – The Paris Stock Exchange ends this last session of the week up 0.9%. On Wall Street, the mood is down following a spectacular rebound in major US indices. The results of the main American banks came out mixed. On a weekly basis, the CAC 40 is however gaining more than 1%.
Up more than 2% at the beginning of the afternoon on the 6000 points, the Parisian place conceded ground in the wake of the decline of the New York Stock Exchange. Investors are digesting results from major U.S. banks that were seen as mixed as the inflation expectations component rose, reports the latest consumer confidence index from the University of Michigan.
The CAC 40 closed the last session of the week with a lead of 0.9% to 5,931.92 points despite the slack observed at the end of the day. On a weekly basis, the barometer of the Parisian rating recorded a gain of 1.08% after a rise of 1.8% last week.
On Wall Street, the hour is with the soup with the grimace the shortly after a spectacular reversal of the indices. At the close of the European stock exchanges, the Dow Jones lost 0.5% while the S&P and the Nasdaq fell for their part by more than 1%.
While Citigroup, JPMorgan and Wells Fargo did better than expected, Morgan Stanley for its part missed the market consensus. The revenues of its investment banking division fell sharply over one year due to an unfavorable climate on the financial markets. The major US banks have also warned of an increase in economic risks and have provisioned accordingly to deal with any outstanding payments from their customers.
On the consumer side, investors took note of retail sales which were flat month on month in September. A slight increase in this indicator was expected by economists. As for the morale of American households, it improved more than expected in October, according to the first data from the monthly survey from the University of Michigan. The confidence index rose to 59.8 after 58.6 in September. Closely watched by the Fed, the one-year inflation expectations component rose to 5.1% after 4.7% in October, where a slowdown to 5.1% was expected by the markets.
This new information will give the Fed an additional reason not to slow down in its fight against inflation that it cannot control. Inflation figures in the United States published the day before, emerged above market expectations. Enough to reduce almost to nothing the hopes of a change in the Fed’s guideline. The markets have already priced in two hikes of 0.75 percentage point in the Fed’s key rate by the end of the year.
The results season across the Atlantic will therefore be an opportunity for the markets to assess the consequences of inflation and the tightening of monetary policy on corporate profits.
Total fit, FDJ too
As for values, TotalEnergies ends up 1.75%. The oil group expects a strong improvement in the performance of its LNG assets. Another supporting factor, Barclays which renewed its recommendation to overweight on the file.
Danone gained 0.6%. The French agrifood giant announced on Friday its intention to withdraw from most of its activities in Russia.
FDJ ends up nearly 2% as the leading gambling operator in France raises its annual targets after an increase in its turnover in the third quarter.
Thermador jumped 7%, the specialist in the distribution of materials for the circulation of fluids in building and industry has unveiled a quality quarterly publication, with sales of 130.16 million euros, up 14 .1% over the previous three months.
On the oil side, prices remain on a downward trend due to forecasts of a drop in demand. The barrel of Brent yielded 2.3% to 92.51 dollars while the WTI plunged for its part by 3% to 86.58 dollars.
Sabrina Sadgui – ©2022 BFM Bourse