(CercleFinance.com) – The day after a further increase of 0.5% to 7,370 points, the Paris Stock Exchange posted a slight increase (+0.4%) which brought the CAC40 back into contact with 7,400 (the former zenith of June 30).
It’s a 5/5 on the upside and the cumulative gain of +4% erases the -3.9% of the previous week.
It is even the 6th session of consecutive increase and the most beautiful bullish series since the period from January 11 to 18.
The surprise is that the volumes are not only comparable to those of the day before but slightly higher than the average of the 4 previous sessions on this half-holiday July 14: buyers seem to be there.
The Euro-Stoxx50, which gained a little over 0.4%, climbed towards 4,410 and seems well on its way to breaking a historic closing record (it just needs to ‘freeze the score’ at the current level).
Maintaining gains shouldn’t be too difficult with Wall Street’s strength at the open, with +0.2% for the Dow Jones and +0.3% for the S&P500.
US export values are supported by a still weak Dollar, which is still yielding a few fractions (the Euro is testing 1.1230, the $-Index is sinking below the 100 threshold, with a new annual low recorded at 99.60 ).
On the bond side, it’s dead calm with OATs unchanged at 3.02%, Bunds stable at 2.46%, and US T-Bonds recover by +4pts to 3.80% despite the decline of -0 .2% in US import prices, after falling 0.4% in May, while export prices fell 0.9% last month, after falling 1, 9% the previous one.
The Labor Department indicates that over the last 12 months, US import prices have fallen by 6.1% in raw data (-1.4% excluding petroleum products), and those for exports have contracted 12% (-12.4% excluding agricultural products) in June.
The main ‘fact of the day’ is the quarterly publications of several heavyweights of the rating in the United States, including the banks JPMorgan Chase, Citi and Wells Fargo.
Bad surprise for Citigroup: fall of -36% in its profit in the second quarter (to $2.6 billion against $4.55 billion in Q2 2022), -13% in trading revenue and -24% in revenue from investment bank.
The net profit of the American bank thus fell to 2.92 billion dollars (2.60 billion euros), or 1.33 dollars per share, during the period from March to June, against 4.55 billion
On the other hand, the planetary No. 1, JP-Morgan, very involved in the rescue of regional banks with the FED, posted a +67% increase in net profit to $14.4 billion ($8.64 billion in Q2 2022), despite provisions for credit losses increased by 27% to $2.9 billion.
Revenues increased by 8% to $41.3 billion compared to the first quarter of 2023.
Blackrock posted a 25% increase in its profit (to 9.28 dollars per share), boosted by gains in its investment funds and growing activity in ETFs.
Note that the food group PepsiCo and the airline Delta Airlines both raised their annual targets on Thursday, on the occasion of their second quarter publications.
The Department of Labor announces that import prices in the United States fell 0.2% in June, after falling 0.4% in May, while export prices fell by 0, 9% last month, after a fall of 1.9% the previous one.
Nevertheless, in variation over the last 12 months, US import prices fell by 6.1% in raw data (-1.4% excluding oil products), and those for exports contracted by 12 % (-12.4% excluding agricultural products) in June.
“The weak US CPI in June appears to have given investors hope that inflation could return to normal levels without the economy slowing down too much, if at all,” Capital Economics further noted.
“We continue to believe that the possibility of a deeper economic slowdown is underestimated, which we believe could reverse the recent strength in equities,” however warned the London office.
It remains to discover the UMich index of confidence of the American consumer.
On the values front in Paris, Vallourec (+3.6%) announces that it anticipates for the second quarter of 2023 an EBITDA (gross operating result) and an overall cash generation higher than its previous forecasts, as well as a significant reduction of its net debt.
Air France-KLM announces that it has signed a definitive agreement with Apollo Global Management for a quasi-equity financing of 500 million euros of the components engineering and maintenance (MRO) business of Air France .
Delta Air Lines has announced an order for 12 more A220-300s, bringing the airline’s total A220 firm order to 131 aircraft – 45 A220-100s and 86 A220-300s. Delta has ordered the A220 five times and is today the largest A220 customer and operator in the world.
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