CAC40: well oriented, however remains below 6,000 points

( – The Paris Stock Exchange ended the day with an increase of 0.64%, bringing the index to 5,920 points, at the end of a day marked by low trading volumes (2.8 billion euros) linked to the closure of Wall Street due to ‘Juneteenth’, a new commemoration celebrating the end of slavery.

In France, the results of the legislative elections – which devote Nupes and RN to the detriment of the presidential party which loses its absolute majority – did not excite the markets. This is a pure non-event on both the equity market and the bond market.

Thus, if the OAT shifts by 7 basis points to 2.282%, it is not a sign of mistrust vis-à-vis France because we observe an identical difference on the side of the ‘Bund’ (at 1.7320% ) or Italian BTPs (+8pts at 3.755%).

On the equity market, the Paris Stock Exchange (notably driven by Renault, which gained nearly 10% and Safran, nearly +6%) followed in the wake of London (+1.5%) and Frankfurt (+1, 1%). The E-Stoxx50 rose 0.8%.

In concrete terms, the massive sell-offs suffered by the Paris market since the end of May could lead to a few buy-backs on the cheap: individuals have mainly been placed on the purchase for the past 15 days, preferably on index ETFs, in the hope of the reissue of the scenario from March 8 to 30 (it had worked well with a rebound of more than 10% of the CAC40 in 3 weeks.

Rebound hopes are inspired by a weekly loss of more than 5% in Paris (June 12-17) and -8.5% since the start of June, or -17.5% since June 1. January.

However, the fears surrounding the possibility of a recession will push companies to opt for a wait-and-see attitude in their investments and to give up on increasing their workforce.

But above all, from July 8/10, companies will begin to reveal their forecasts for the second half of 2022 and their margin and revenue outlook for the next 12 months.

The agenda in terms of economic statistics was announced to be relatively thin on Monday (and should remain so until Thursday and the publication of the PMI indices in Europe and the United States), but the 1st figure of the week seems to set the tone : the producer price index in Germany explodes at more than 33% on an annual basis, unheard of since 1949 (margins will inevitably suffer by the end of 2022).

The severe tightening of the monetary policies of the major central banks in order to combat soaring inflation will also remain a major point of attention, given the risks that this poses to global economic growth.

On Forex, the Euro recovered by +0.4% to 1.0536 dollars.

On the stock side, Airbus and Quantas have announced that they have invested nearly $200 million to accelerate the establishment of a sustainable aviation fuel (SAF) industry in Australia, as part of a ‘historic’ agreement ‘.

Valneva (+29%) and Pfizer have entered into a stock subscription agreement and updated the terms of their collaboration and license agreement for the Lyme disease vaccine candidate, VLA15.

Pfizer will invest 90.5 million euros (95 million dollars), or 8.1% of the share capital of Valneva at a price of 9.49 E per share, through a capital increase.

Figeac Aéro announces that it has entered into an agreement with Latécoère for the sale of the industrial and land assets of its Hermosillo subsidiary in Mexico. The completion of this operation should materialize no later than September 30, 2022.

Finally, Atos (+1.4%) announces that Stéphane Lhopiteau will leave the Group during the second half of 2022 and will be replaced by Nathalie Sénéchault as Group Chief Financial Officer.

The envisaged separation of Atos into two separate listed companies should lead to a complete reorganization of the Atos Group and in this case of its financial management.

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