(CercleFinance.com) – The Paris Stock Exchange ended the session up 1.59%, at 6,131 points, notably driven by Michelin (+5.4%), EssilorLuxottica (+4.3%) and Engie ( +3.8%).
The same upward dynamic is at work on the European markets, where Frankfurt assumes 1.6% ahead of London (+0.6%).
The markets are leaving aside the poor European PMIs published by S&P-Global (see below) to focus on the appointment of Rishi Sunak to succeed Liz Truss as the new Prime Minister.
At the start of the results season across the Atlantic, the Dow Jones gained nearly 1% ahead of the S&P500 (+0.6%) while the Nasdaq returned to equilibrium, after starting the session in red.
No less than 165 S&P500 companies must disclose their quarterly results and the climax will occur on Wednesday and Thursday with Apple, Alphabet (Google), Amazon, Meta and Microsoft.
Beyond the publication of results, the highlight of the week will be the monetary policy decision of the European Central Bank (ECB), expected on Thursday.
After raising its key rates by 125 basis points since July, the Frankfurt-based institute is preparing to continue its tightening cycle with another hike of 75 basis points… but some experts expect at a turn of the screw of +100pts.
‘The ECB is monomaniac and its speech is without nuance: for fear of seeing inflation expectations slip, it is necessary to raise the key rates at a sustained pace’, recall the economists of Oddo BHF.
In the meantime, investors were able to take note this morning of the ‘anticipated’ composite PMI index of global activity in the Eurozone (compiled by S&P-Global): it came out sharply down to 47.1 against 48.1 , in the wake of the German PMI which fell towards 44.1, further and further from the 50 threshold.
This technical threshold is preserved in-extremis in France with a decline from 51.2 in September to 50.0 in flash estimate for October, thus signaling a stagnation in the activity of the French private sector at the start of the fourth quarter and shows its lowest level since March 2021.
It was again the manufacturing sector that recorded the weakest performance, its production having fallen for a fifth consecutive month, while the increase in activity continued in the services sector, although at a lower rhythm.
“As very high inflation erodes customers’ purchasing power, borrowing costs rise and uncertainty mounts, the outlook is darkening in the euro zone’s second largest economy,” he said. do we at S&P Global.
The good side of things is that this is causing a clear upturn in Europe with OATs falling from 2.993% to 2.87%, Bunds are down -10 Pts from 2.44% to 2.340%, Italian BTPs from -20pts to 4.604%.
US bond markets are deteriorating with US T-Bonds stretching from 4.22% to 4.27%.
In securities news, reacting to rumours, Atos acknowledges having been approached by several players interested in a possible acquisition of its tech foundations activity, but specifies that “the hypothesis in which such a mark of interest would lead to a transaction is very uncertain.
Sopra Steria announces that Axway, in which it holds 32% of the capital, has announced the signing of an agreement concerning the sale of a product that is no longer part of its ongoing strategy with a view to improving its operational performance .
Imerys announces the launch of the Emili project (Mining of Lithiniferous MIca by Imerys), a major lithium mining project at its Beauvoir site, in the Allier department, which has been producing kaolin for ceramics since the end of the 19th century .
Orpea was suspended from trading at the request of the AMF, pending a press release from the EHPAD manager.
Airbus announces that its HAPS (High Altitude Platform Station) connectivity business has signed a strategic partnership with Salam, a leading Saudi telecommunications company, to advance the development of private networks and Earth observation services in high altitude from the stratosphere to serve the Kingdom of Saudi Arabia.
Finally, the Autorité des marchés financiers (AMF) requested, this morning before the opening of the market, the suspension of the financial instruments (shares, debt securities and related instruments) of the company Orpea, in order to ensure a good market information and pending the publication of a press release from the issuer in application of the European regulation on market abuse.
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