(CercleFinance.com) – After a resounding start to the week (+1.6% on Monday followed by +1.9% yesterday), the Paris stock market is continuing its ascent today, albeit at a slower pace. The Parisian index thus assumes 0.41%, at 6276 points, notably driven by Alstom (+5.2%), Thales (+3.8%) and Worldline (+2.8%).
In Europe, Frankfurt gains 1% and is ahead of London (+0.6%) while the E-Stoxx50 grabs 0.6%.
Note the good momentum at work on Wall Street with the Dow Jones gaining +0.9% and the S&P500 returning to the green somewhat unexpectedly, at +0.5%.
The trigger came from ‘bad news’ which became good news with the announcement of a heavy relapse of 10.9% in new home sales in the United States in September, i.e. an annualized and corrected volume seasonal variations of 603,000.
The United States Department of Commerce recalls that sales had climbed 24.7% (revised figure compared to +28.8% of the initial estimate) with an annual volume of 677,000 homes (revised figure compared to 685,000 of the initial estimate).
The median price for US new home sales was $470,600 last month. The stock of new homes ready for sale stands at 467,000 and represents 9.2 months of transactions at the current flow rate.
In the series of ‘bad news’, the United States recorded a trade deficit up by more than 5%, to -92.22 billion dollars in September, against -87.3 billion dollars in August. The consensus was $87.5 billion.
Oil inventories for the past week have finally rebounded a bit according to figures from the EIA (the US Energy Information Agency) at 439.9 million barrels in the week of October 17, i.e. +2.6 million compared to the previous week.
For their part, inventories of distilled products, including heating oil, marked a very slight increase of 200,000 barrels, while gasoline inventories fell for their part by 1.5 million barrels, compared to the previous week.
Finally, the EIA indicates that the refineries operated at 88.9% of their operational capacity during this same week, with an average production of 9.4 million barrels/day.
These are data that are closely followed as reserves have melted over the past 9 months to reach a historic low (in order to curb the rise in fuel prices).
The bond markets also appreciated the bad news and the US T-Bonds continued to ease to 4.02 against 4.11% the day before.
Relaxation of -4pts on average in Europe (OAT at 2.65%, Bund at 2.125%) on the eve of the ECB meeting and an expected rise of 75pts in key rates.
Finally, in corporate news, Thales (+3.8%) reports revenue of 12.3 billion euros in the first nine months of 2022, organic growth of 6.4%. (+9.6% in total), as well as order intake of 15.4 billion, an organic increase of 41% (+45% in total).
Atos (+14%) posted revenue of 2.82 billion euros for the third quarter of 2022, up 5.7%, its growth at constant exchange rates having returned to positive territory at +1 .1%, while organic growth stabilized at -0.1%.
For the whole of 2022, Dassault Systèmes confirms revenue growth of between 9 and 10%, but increases its non-IFRS EPS target, to a range between 1.12 and 1.14 euros, or 18 at 19% growth.
Finally, TotalEnergies announces the creation of a joint venture with Casa dos Ventos (CDV), Brazil’s leading renewable developer, to develop, build and operate Casa Dos Ventos’ portfolio of renewable projects.
Orpéa collapses by -33% to 9.83E after 2 suspension sessions: contrary to the latest statements by the new CEO, Laurent Guillot, who considered it premature to discuss the refinancing conditions less than a week ago, he proves that Orpéa is indeed working on a restructuring of its debt.
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