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CAC40: in the green with the good momentum of Wall Street


(CercleFinance.com) – After having lost up to 1.6% shortly after the opening, the Paris Stock Exchange managed to erase its losses and return to the green at the very end of the session.

Although modest (+0.19% to 5765 points), the gain of the Parisian index has the merit of temporarily interrupting the downward trend at work on the Parisian market for nearly two weeks.

The CAC 40 remains penalized by the sharp decline in banking (-3% for Crédit Agricole, -3.9% for BNP Paribas and -4.3% for Société Générale) but benefits from the good momentum across the Atlantic with a Nasdaq at +0.8%, a Dow Jones at +0.9% and an S&P500 at +1%.

‘Graphically, the CAC40 index must quickly leave the area of ​​5750/5780 points to fuel and give hope for a first technical rebound’, believe the chartists of Kiplink.

The Euro-Stoxx50 went back into the green (+0.3%) as did Frankfurt (+0.4%) and London (+0.3%).

Concerns related to the monetary tightening implemented by the major central banks, the rise in real rates and the slowdown in growth nevertheless continue to fuel market nervousness.

A ‘dreadful’ figure was published this morning in Germany: German consumer confidence fell to -42.5 in October. The income expectations component plunged 22.4 points to a record low of -67.7 (worse than during the Covid crisis), implying a risk of contraction in consumer spending.

Risk aversion allowed the dollar to set a new record this morning, with a gain that now exceeds 15% this year.

But after 48 hours of freefall, the Euro wakes up and recovers 0.7% towards 0.9663 after registering a 20-year low this morning at 0.9540 against the greenback.

In the United States, the yield of ten-year Treasuries which peaked above 4.00% (at most since autumn 2008) is backtracking and receding -17 Pts in a few hours towards 3.790%, our OATs and the Bunds finally seem to be leveling off with yield spreads of -10pts at 2.76 and 2.16% respectively.
In Italy, it’s even more spectacular with a decline from 4.92 to 4.60% (and -17pts compared to the previous day’s close).

British Gilts fell -45 basis points towards 4.06% after the intervention of the BoE which intervened to support ‘long bonds’ and therefore the Pound, which fell this morning to a historic low of 1.053 against the $, with Gilts at 4.50%, leading to colossal losses for some pension funds.

The barrel of Brent nonetheless recovered 2.8% to $88 and US light crude 3.2% to $80.8 on the NYMEX.

Saint-Gobain and solar manufacturer Megasol, the European leader in building-integrated solar modules (BIPV), announce the conclusion of a strategic partnership.

As part of this partnership, Saint-Gobain has acquired a minority stake in Megasol’s activity dedicated to the development and production of BIPV modules at its Deitingen site in Switzerland.

Pernod Ricard announces the creation of a new business entity. From November 2, 2022, The Whiskey Exchange, Drinks & Co and Bodeboca will be united in this new business unit. This new entity will report to Alexandre Ricard and Nicolas Oudinot as Chief Executive Officer.

Nexity (-14%) organized an investor day today to present its strategy as a global real estate operator over the period 2022-2026. The Group confirms its ‘guidance’ for the year 2022. It is aiming for a 14% market share in residential real estate in a market expected at 130,000 units, more than 4.6 billion euros in turnover and a current operating margin of around 8%.

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