(CercleFinance.com) – The Paris Stock Exchange took advantage of the rebound on Wall Street (the Nasdaq climbed +2.1%) to amplify its gains (+0.8%) and hit its highest level in 6 weeks at 6,265 .
The Euro-Stoxx50 climbed by +1.1% towards 3.610 and showed undeniable resilience in the face of all the macroeconomic headwinds and the more mediocre statistics published in recent days.
The markets seem to have already forgotten about the downward revision of IMF forecasts, the plunge in US household confidence, the bout of depression the day before following Wal-Mart’s rather pessimistic forecasts.
Operators are ‘reassured’ with -as usual- better than expected quarterly results (or ‘less worse than expected’ declines in profits).
They can also feel comforted by the +1.9% rebound in durable goods orders in June (after +0.8% in May), according to the Commerce Department, even though the market consensus was expecting a decline of -0.4%.
Excluding the transportation sector, whose variations are usually considered erratic and which jumped 5.1% this time around, US durable goods orders only rose by 0.3% in June.
The bond markets have stabilized and yields remain close to lows dating back 2 months (the OAT and the Bund shift by +0.5Pt symbolic to 1.5250% and 0.93400% respectively): they too are posting their serenity ahead of the Fed’s press release.
The FOMC, the monetary policy committee of the central bank, should proceed to a new tightening of the screw by 75 basis points in order to stem the acceleration of inflation in the United States.
The press conference of its president, Jerome Powell, could also provide investors with some valuable clues as to the intentions of the institution in terms of future rate trajectory.
The US central bank is expected to announce that it plans to continue raising rates in the coming months, while recalling that its monetary policy remains dependent on economic data.
“We expect the Fed to remain determined to restore price stability, but with a slightly more balanced discourse,” predicts François Rimeu, senior strategist at La Française AM.
This type of announcement could help reassure a little more markets that have recently managed to find an upward slope.
Since the middle of June, the S&P 500 – the benchmark for US funds – has recovered almost 7% of its value (and the Nasdaq more than 10%) in anticipation of possible rate cuts from the Federal Reserve in 2023.
While awaiting the Fed’s verdict, the market took notice of a new flurry of corporate results, starting with those of several European heavyweights such as Credit Suisse, Danone or Mercedes-Benz, all published at the beginning of morning.
In the United States, two giants of the technology sector unveiled reassuring figures last night, which somewhat appeases investors who found that the earnings season had gotten off to a timid, if not downright gloomy, start.
Despite the good health of its ‘cloud’ branch Azure, Microsoft missed the consensus in the second quarter, but its title is expected to rise by 4% at the opening of Wall Street in the wake of forecasts deemed resolutely optimistic.
Same favorable reaction to the figures of Alphabet, the parent company of Google, which posted gains of 5% in pre-opening following less bad performances than expected over the past quarter, again well helped by the dynamism of its businesses related to the ‘cloud’.
As for values in Paris, Elior jumped 33% to 2.8E on results above a unanimously negative consensus which turns out to ‘have it all wrong’, Worldline also surprised analysts and jumped 15%.
Rebound of +15% also on ATOS (around 11.5E) which had reached a ridiculously low valuation the day before.
LVMH (+1%) achieved sales of 36.7 billion euros in the first half of 2022, up 28%. Organic sales growth was 21%. Net income, Group share amounted to 6,532 million euros, up 23% compared to the first half of 2021.
Danone (-1%) published a current half-year EPS up 7.2% to 1.63 euros, despite a current operating margin down one point to 12.1%. At more than 13.3 billion euros, the net sales of the agri-food group increased by 7.4% like-for-like (+12.6% as published).
Valeo announced net income Group share of -48 million euros. The group confirms its financial objectives for 2022. Valeo is aiming in particular for sales of between €19.2 billion and €20 billion, and EBITDA of 11.8% to 12.3% of sales.
TF1 and M6 (-7%) indicate that the investigation services of the Competition Authority (AC) consider that their proposed merger ‘raises significant competition problems (in particular in the advertising market)’ .
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