(CercleFinance.com) – The Paris Stock Exchange erased a good part of its losses in the last hour of trading, but nevertheless lost 0.81%, to 5,916 points.
The trend is identical in Frankfurt (-1.02%), in London (-0.78%) as well as on the E-Stoxx50 (-0.77%).
Across the Atlantic, the Dow Jones and the S&P500 gained 0.5% and 0.7% respectively, behind the Nasdaq (+1%), investors seem reassured by the speech – however unsurprisingly – of the President of the Fed before the Business Committee Senate Banks.
Jerome Powell did not confirm the ‘all-in’ against inflation (to use the formula of Christophe Waller of the FED of Saint-Louis) and affirms that the restrictive monetary policy will not lead to a risk of recession (anticipated by 45% of economists in the United States).
Following last week’s 75 basis point rate hike, the first in 30 years, a further 75 basis point hike in the fed funds rate is being considered after the scheduled meeting of July 28… but the FED will then ‘adapt to the data it will have’, and this could translate into a drop in inflationary pressures: the hope of a soft landing is reborn.
Even before Jerome Powell took the floor, there was a sharp drop in rates (-15 basis points on average).
European bond markets fell sharply with -16.5pts on our OATs at 2.16%, -15pts on Bunds at 1.615%, -17.5pts on Italian BTPs at 3.61%.
Across the Atlantic, T-Bonds also posted -16 basis points at 3.145% while the barrel of Brent fell 3% to $110.
As for values, Faurecia (-2.3%) announced the success of its capital increase of 705 million euros aimed at partially refinancing the acquisition of German Hella.
This capital increase with preferential subscription rights will result in the issue of nearly 45.5 million new shares with a nominal value of seven euros each, on the basis of a unit subscription price of 15.5 euros.
Carrefour fell by 7% towards 17E with the fear of a price war between distributors.
Crédit Agricole presented its Ambitions 2025 plan. This plan is based on strong organic growth potential with a target of more than one million additional customers. The group is aiming for a net income Group share of more than 6 billion euros and wishes to further strengthen profitability with a return on tangible equity of more than 12%.
Finally, Amundi also today unveiled its 2025 strategic plan, focused on pursuing organic growth, maintaining a cost/income ratio at the best level in the industry and a high return for shareholders. Amundi expects to generate average annual growth in adjusted net income of 5% over the period.
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