Closing Paris: the CAC40 loses 0.21% before the Fed’s verdict


THE TREND

(Boursier.com) — Yesterday’s fine rise (+1.42%) on the Paris Stock Exchange did not continue this Wednesday when the Parisian index timidly returned 0.21% back to 6,730 points at the close . The stronger than expected deceleration in consumer price inflation in the United States, to 7.1% over one year in November, nevertheless relieved investors who are now watching the Fed’s verdict this evening, which should not raise its key rates “only” by 0.5 points. The US central bank should therefore raise its fed funds rate to between 4.25% and 4.5%, the highest level since December 2007.

The market consensus has, however, shifted towards an upward revision of the likelihood that the Fed will slow the pace of rate hikes in early 2023, before likely ending the monetary tightening cycle in March…

The euro is camped above $1.650 this evening, while the barrel of Brent rises to nearly $83.

RISING VALUES

P&V up 7% with Euroapi (+3.5%) and Amplitude

Valeo: +3% with Gl Events

Showroomprivé : +2.5% withDBV, Mercialys, Faurecia, Guillemot

Line data (+1.7%) decided to reduce its share capital by canceling 318,520 treasury shares, i.e. 5% of the capital. The capital of the publisher of global solutions for asset management and insurance professionals will now consist of 6,060,807 shares.

Verallia: +1.5% with Vallourec, Interparfums, Dassault Aviation

Partouche Group (steady). The leading casino operator in France returned to its pre-pandemic level of activity in its last financial year with an annual turnover of 388.8 ME, up 52%. On a like-for-like basis, it increased by 108.2% compared to 2021 and by +2% compared to 2019. Gross Gaming Revenue reached €636.7 million, up 81.8% over one year.

FALLING VALUES

AB Science plunged 24% after the company said it had received a notice of deficiency from the Canadian health agency in connection with the marketing application for masitinib in the treatment of amyotrophic lateral sclerosis. AB Science specifies that this NOD (and not a NO: Notice of Non-compliance) means that the Health Canada agency has requested that additional information be communicated as part of the masitinib marketing application. The review process has been paused and will resume when this information has been communicated to Health Canada.

Vantiva : -6% with McPhy (-5%)

ArcelorMittal yields 4.3%. The selling pressure on the steel giant is linked to a note from Bank of America which downgraded its recommendation to ‘neutral’ with a target set at 28 euros. Despite everything, the market remains largely positive on the stock since, according to the ‘Bloomberg’ consensus, 14 analysts are ‘buy’, 5 are ‘hold’ and only 1 is ‘sell’. The average 12-month target is set at 33.17 euros.

Orapi (-4%) and Nakon

Crossroads : -4%. The latest data from Kantar Worldpanel for P11 2022, i.e. the period from October 30 to November 27, is not very good for the king of hypermarkets since if the trio Leclerc, Intermarché and Système U shows market share gains of 0, 2 point on the sequence, Carrefour loses 0.2 pdm (stability in supers), against +10 to +30 bp previously observed in 2022. As noted by Bryan Garnier, Carrefour thus loses ground for the first time in France in 2022 Whether this new trend is sustainable remains to be seen, as Carrefour was accustomed to gaining market share through its strong private labels and promotions. Discounters Lidl and Aldi were stable overall over the period. Logically, consumers favor low-cost daily players with a strong price image, underlines BG. The situation is not getting better Casino (-0.8%), whose market share continued to decline, falling 60bps over the period, with sequential deterioration from the -10 to -30bp declines seen in 2022. The broker believes that Casino’s ever-increasing price positioning now becomes unsustainable.

BigBen :-3.5% with Rally

Eramet : -2.5% followed byAtos and M6

vinci : -2% withS30, believe (-1.5%)

Air France-KLM gives back 0.4%, while the French company remains confronted with a potential strike by part of its flight personnel during the end-of-year holidays. But the carrier does not expect to cancel flights at this stage and is working to avoid potential travel disruptions. “Regarding the strike notice issued by some cabin crew unions, Air France plans to fly all its customers to their destinations,” AF told ‘Bloomberg’. The company says talks are continuing with cabin crew representative organizations. Air France has held 14 meetings with union representatives since September and is planning five more by January, said a spokesperson for the group. The Air France Group Flight Crew Union (SNGAF) and the Civil Aviation Flight Crew Union (UNAC) have filed a strike notice which runs from December 22 to January 2, 2023. They are calling for the signing of a collective agreement provisional to replace the agreement determining their social rights which expired at the end of October.



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