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Closing Paris: finally slightly up, but Sanofi is still falling


(Boursier.com) — THE TREND

The CAC40 continued to rise on Thursday to end up 0.33% at 6,544 points, not without hesitating throughout the session… The latest US producer price figures published this afternoon confirmed the fact that inflation had probably peaked in the United States, even if it should remain high for many more months, forcing the Fed to raise its rates again, but probably to a lesser extent…

ECO AND CURRENCIES

The producer price index therefore fell by 0.5% in July compared to the previous month, where the consensus was positioned at +0.2%. Excluding food and energy, the index posted an increase of 0.2% over one month and 7.6% over one year. Levels lower than the previous month and the expectations of economists… Despite this lull on the inflation front, several officials of the institution – from the “hawk” Neel Kashkari to the “dove” Mary Daly – did not let no doubt that the Fed would continue to tighten its monetary policy until inflationary pressures subside for a long time…
“Despite unwavering Fed rhetoric, this release has given investors hope that the pace of U.S. rate hikes will slow and the legendary soft landing may be less elusive than expected. “, told ‘Bloomberg’ Lewis Grant, head of global equities at Federated Hermes.

According to the CME Group’s FedWatch barometer, the market now estimates the probability of a 50 basis point rate hike at the end of September at 67.5%, and at 32.5% that of a rate hike of 75 bps (between 2.75% and 3%). On the bond markets, the rates evolve in dispersed order. The yield on the 10-year American 10-year rose by 6.5 basis points to 2.84% while that of the two-year, more sensitive to changes in the Fed’s rate, dropped 2.5 bp to 3.19%. The dollar lost another 0.4% against a basket of currencies, while the euro rose to 1.0330/$.
The barrel of WTI crude for September delivery is currently up 0.6% to 92.5 dollars on the Nymex and Brent is back at $99.

RISING VALUES

The biological biocide producer Amoeba soared 33%, as the group informed the market that the US Environmental Protection Agency (US EPA) had issued a favorable pre-decision following the assessment of Willaertia’s authorization application file magna C2c Maky as a biocidal active substance in cooling systems. The EPA has concluded that the amoeba Willaertia magna C2c Maky and Biomeba products containing it may be authorized in the territory of the United States for biocidal use in closed cooling systems, for the control of microbial sludge (bioslime) , control of microorganism-induced corrosion and control of general microbial flora in cooling tower waters. Given the final administrative steps necessary for the US EPA to finalize the procedure, the issuance of the authorization for the marketing of the products is expected no later than the end of 2022…

IIS gains +8.6%. The specialist in the engineering professions achieved during the first quarter of its 2022-2023 financial year a turnover of 238.5 ME, up 27.4%. SII emphasizes that all geographical entities contributed to this positive performance, with the sole exception of Spain, whose comparison base was high. This growth was fueled by an activity rate at its highest for almost three years, a change in the workforce linked to the level of recruitment in the previous financial year and an excellent commercial performance by all the teams. SII confidently confirms the outlook expected for the first half of this year as a whole: double-digit organic revenue growth, now expected to exceed 20% and an operating margin of between 9 and 10%, under subject to an evolution without major change in the health and geopolitical situation.

Fermentalg rises by 7.6% followed by McPhy (+5%) with Rallye, Nanobiotix and Inventiva (+4.5%)

Genfit : +4% with Forsee Power, Casino

Worldline earns 3.5%. The payments specialist, which pleasantly surprised the market in the first half, has the support of JP Morgan, which reiterated its ‘overweight’ opinion on the stock and its target of 59 euros. Analysts are largely positive on the issue since, according to the ‘Bloomberg’ consensus, 21 are for ‘buy’, 2 for ‘hold’ and only 1 for ‘sell’. The average 12-month target is set at 57.39 euros. More generally, the sharp rise in the Nasdaq yesterday with the drop in bond yields is benefiting the technology sector.

TechnipEnergies : +3.5% with Innate

TotalEnergies takes up 2.8% with the help of a barrel of Brent which goes back to more than 99 dollars.

BigBen : +2.8% with Vallourec, Veolia

Tarkett : +2.5% with Eramet, CGG, Verallia, Nicox

Guillemot : +2% followed by LDC, Lagardère, Ateme

GTT : +1.5% with M6, Believe, Orpea, Carrefour

FALLING VALUES

By far the biggest drop in the CAC40, Sanofi still drops 3.3%, in the red for the fourth consecutive session. Bad news around the pharmaceutical giant has been piling up in recent days. The group must first deal with the end of recruitment for clinical trials of tolebrutinib, an experimental treatment for certain forms of multiple sclerosis and myasthenia gravis, following an opinion from the independent monitoring committee data (independent data monitoring committee). The latter requested the suspension of the recruitment of all trials, without specifying the reason for this interruption. On Tuesday, UBS added some fuel to the fire by downgrading the file to ‘neutral’. The Swiss bank sees few major catalysts for the rest of the year and says major pipeline programs such as amcenestrant and tolebrutinib have “recently encountered hurdles.” If the specialist recognizes that the action was perceived favorably in a difficult context in the 2nd quarter, it seems to lack the drive to attract additional buyers, especially as a potential Zantac affair hovers above the company. UBS lowered its target from 118 to 103 euros. It is precisely the sword of Damocles around Zantac that seems to explain most of the current downward pressure on the stock. Sanofi is not the only one concerned since Haleon and GSK are also heckled in Europe on fears of a lawsuit in the United States… Zantac, a medicine against heartburn and whose active chemical product is ranitidine , is suspected of causing increased levels of a probable carcinogen, N-nitrosodimethylamine (NDMA).

Elior down nearly 3% with Euronext

Michelin : -2.5% with Eutelsat, Rothschild, Euroapi and Synergie (-2%)

Valneva down 1.5%. Valneva expects its total sales to reach €340 million to €360 million in 2022, taking into account the current recovery in sales of traveler’s vaccines, the recognition of revenues related to supply contracts with the European Commission and the United Kingdom, and the addendum to the Advance Purchase Agreement with the European Commission for Valneva’s COVID-19 vaccine. Sales of products from Valneva’s Travel Vaccines franchise are expected to reach 70 million to 80 million euros, while sales of the COVID-19 vaccine are expected to reach 30 million to 40 million euros.

Argan : -1.5% with Arkema, Elis, Ipsen, Bic Thermador

country house : -1% followed by Bic, Accor, FNAC Darty, Getlink and Manitou with Amundi



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