THE TREND
(Boursier.com) — The Parisian market had a very good weekend with a Cac40 which won this Friday 1.87% to 7,270 points.
Published at the start of the afternoon, the employment report proved to be of good quality, which led operators to favor risky assets. The US labor market is once again surprisingly strong. The creation of non-agricultural jobs for the month of May 2023 stood at 339,000, against a consensus of around 187,000 and a level revised upwards to 294,000 for the previous month – against 253,000 previously estimated.
Moreover, the adoption by the US Senate of the text on the debt ceiling is having an effect as this episode of tension has disturbed the markets in recent weeks. What allow investors to focus again on the question of the level of interest rates in the United States and Europe.
The hope that the Federal Reserve and the ECB will pause the rate hike that has been driving investors in recent weeks is open to question. For 72% of investors, the Fed will not move its rates at the next meeting, according to the Fedwatch barometer. Philadelphia Fed President Patrick Harker said Thursday night that “it’s time to at least hit the pause button for a meeting and see how it goes,” referring to the bank’s meeting. center in two weeks. On the side of the ECB, the break is not for now and a new increase in key rates is widely expected on June 15th.
RISING VALUES
* Forvia gained 7.9% to 21.27 Euros boosted by the good figures of the French automotive market in May. Some stakeholders believe that the automotive supplier will raise its annual forecasts.
* Virbac jumped 6.5% to 304.5 Euros boosted by sector news. Dechra, the British manufacturer of veterinary pharmaceutical products, is to be acquired by the Swedish fund EQT for 4.46 billion pounds (5.19 billion euros). An amount revised down 4.8% compared to the initial offer of the Scandinavian group after the earnings warning recently issued by the British company.
* Alstom (+3.5% to 26.95 Euros) has signed a contract with the Southeastern Pennsylvania Transportation Authority (SEPTA), for the delivery of 130 full low-floor electric trams, worth more than 667 million euros (about $718.2 million), with options for building 30 more trams.
* Atari (+1.4% to 0.14 euro) confirms having raised 30 million euros with its issue of bonds convertible into new ordinary shares maturing in 2026, carrying a coupon of 6.50%. The Offer was fully subscribed during the priority period. As part of the Offer, Irata, a 27.73% shareholder of the Company held by CEO Wade Rosen, subscribed to 195,163,398 out of the 200 million Convertible Bonds issued, corresponding to 97.58% of the total amount of the Offer (approximately €16.3 million by offsetting claims and €12.9 million in cash).
* Nexity, which remained on four sessions of sharp decline, advance of 0.8% to 18.72 euros the day after the announcement of the sale of 100% of its promotion activities in Poland to Develia, a Polish promoter. This sale, the price of which has been set at 100 million euros, is part of the schedule announced by Nexity in February 2023 during its annual results and will contribute to reducing the Group’s debt. The government must also unveil next Monday the conclusions of the National Council for Refoundation (CNR) devoted to housing for which professionals expect in particular progress around the status of the private lessor or “universal regime of private rental investment”, new mechanism incentive that could take over from Pinel.
FALLING VALUES
* No significant declines on the CAC40, Orange brings up the rear with a decline of 1% to 11.03 euros.
* rally, the parent company of Casino lost another 13% to 0.74 euro. The title Casino touched yesterday a new all-time low at 4.77 euros. The distributor announced the opening of a conciliation procedure for an initial period of four months, possibly extendable by one month. The purpose of this procedure is to allow the Casino Group to engage in discussions with its financial creditors within a legally secure framework.