(CercleFinance.com) – The Paris Stock Exchange is moving around its equilibrium point, around 6040 points. In a context of rising bond yields, investors tend to abandon the equity markets in favor of sovereign bonds, which are more profitable.
The rise in government bond yields accelerated on Wednesday in Europe, but especially in the United States where the rate of ten-year Treasury bills rose above 4.1%, the highest since 2008.
Their advance accelerated after comments by Minneapolis Fed Chairman Neel Kashkari, who said he saw no signs of slowing inflation and reiterated the need to keep raising interest rates.
The deterioration of the long-term yield curve in the United States now suggests that it is indeed two rate hikes of 75 points from the Fed that are expected on November 2 and December 15, ie a final target of 5%.
In such a context, many strategists believe that it is still too early to go back to buying stocks.
“The outlook for equities remains negative,” said Steven Bell, chief economist at Columbia Threadneedle Investments for the EMEA region, who considers the scenario of a recovery in 2023 “premature”.
‘Although the markets are clearly discounting the outlook for inflation and recession, we must recognize that the reality is always different from the forecasts’, he recalls.
In Europe, the ten-year German Bund yield still takes
more than two points to 2.39% in the first exchanges while its
French equivalent evolves to 2.94%.
Today, investors will learn about weekly US jobless claims, the Philadelphia Fed index, existing home sales and Conference Board leading indicators.
In securities news, Technip Energies publishes for the first nine months of 2022 an increase in adjusted earnings per share of 42% to 1.25 euros, and an improvement in adjusted recurring EBIT margin of 0.6 points to 6, 9%, for an adjusted turnover down 1% to 4.9 billion.
Hermès International announces sales at the end of September 2022 of 8.61 billion euros, up 30% at current exchange rates and 24% at constant exchange rates, ‘all geographic areas posting very solid performance’.
Getlink unveils third-quarter 2022 revenue of €466.1 million, up 109% year-on-year, including revenue for Eurotunnel up 71% to €325.8 million, driven by growth in shuttle and Eurostar passenger traffic.
Pernod Ricard posted revenue of 3.31 billion euros for the first three months of its 2022-23 financial year, up 22% on a headline basis, with a very favorable exchange rate effect overall and growth 11% internal.
Finally, Voltalia publishes revenues for the first nine months of 2022 at €349.5 million, up 39% (+31% at constant exchange rates), including third quarter revenues at €135.2 million, up 33% (+25% at constant exchange rates).
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