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Closing Paris: the CAC40 rebounds by more than 3%!


(Boursier.com) — THE TREND

The CAC40 raised its head on Friday, ending the week rebounding 3.23% after two sessions of decline. The CAC40 thus recrossed the 6,000 points, to 6,073 points at the close.
The US rating is also progressing strongly this evening, while operators have now integrated the idea of ​​a significant risk of recession due to monetary tightening and inflation. What cause a relaxation on long rates after several weeks under very high tension…

ECO AND CURRENCIES

The final US consumer sentiment index for the month of June 2022, measured by the University of Michigan, came in at 50, versus 50.2 consensus and 50.2 also for its preliminary reading.
Federal Reserve Chairman Jerome Powell, who was heard by the Senate on Wednesday and by the House of Representatives on Thursday, set the tone. On Thursday, he was once again very tough on soaring inflation, saying the Fed’s determination to bring prices under control was “unconditional”, while admitting that the fight against rising prices is getting worse. accompanied by a risk of rising unemployment and economic slowdown. The day before, before the Senate, the boss of the Fed had admitted that it was “possible” that the rise in rates would lead to a recession. “It is not at all the desired effect, but it is certainly a possibility”, he added, acknowledging that a soft landing was going to be “very difficult”…
Yesterday, the leader of the Fed reiterated that the bank’s intention was to achieve a soft landing, even if the path is increasingly difficult. He admitted that in hindsight, inflation had been underestimated by the US central bank. To calm prices, “we have no precision tool” other than raising rates, he explained, adding that he was aware that monetary tightening should reduce growth and affect employment. “It is significantly more difficult to reduce inflation without impacting the labor market,” he acknowledged.

Recall that the Fed carried out a rate hike of 75 basis points last week (the largest hike since 1994), which took its federal funds rate between 1.5 and 1.75%, in order to counter inflation, which reached 8.6% over one year in May, the highest for 41 years in the United States. Jerome Powell and other central bank officials have signaled they will hike another 50bp or 75bp at the next meeting in July. New economic projections released on June 15 showed the Fed expecting the fed funds rate to hit 3.4% by the end of 2022, which would be its highest level since 2008, then 3 .8% at the end of 2023.
Jerome Powell confirmed that the pace of further rate hikes will depend on indicators and how the economic outlook evolves. “We will make our decisions meeting after meeting,” explained the leader of the American central bank.
Oil rises to $113 on Brent tonight. The euro stands at 1.0550/$.

RISING VALUES

Abivax rises by more than 10% followed by Genomic (+7.5%) and Sartorius (+7%)

Adocia : +6% with SES Imagotag

claranova : +5.5% with Orpea, Amudi

Pernod Ricard : +5% with Remy Cointreau

Sanofi (+5%) and GSK today announced positive data from the trial of their bivalent D614 and Beta (B.1.351) vaccine. Sanofi-GSK’s vaccine is the first candidate to demonstrate its efficacy, in a placebo-controlled trial and in a context of high circulation of the Omicron variant. The vaccine showed a favorable safety and tolerability profile.
Earlier this month, Sanofi announced positive data from two trials of its next-generation COVID-19 booster vaccine candidate formulated with the Beta variant antigen and GSK’s pandemic-use adjuvant. All of these data, which will be submitted to the regulatory authorities, confirm the potential of Sanofi-GSK’s next-generation booster vaccine containing the Beta antigen to constitute a relevant response to public health needs.

Prodways : +5% with Dassault Systemes, Veolia (+4.5%)

L’Oreal : +4% with Legrand, Danone, Air Liquide, Technip Energies, Dior and Scor

LVMH : +3.5% with Wendel, Elior, Publicis, Crédit Agricole, Essilor, Virbac, Sodexo, Essilor

believe : +3% with Nexans and Elis

FALLING VALUES

Valneva (-11%) and Pfizer Inc announced that the operation to subscribe to the capital of Valneva has been completed. Pursuant to a share subscription agreement, Pfizer has invested 90.5 million euros ($95 million), or 8.1% of Valneva’s capital at a price of 9.49 euros per share, through a reserved capital increase.
Valneva plans to use the proceeds of this investment to fund part of its contribution to the Phase 3 development program of the Lyme disease vaccine candidate VLA15.
Pfizer expects to initiate the Phase 3 study of VLA15 in Q3 2022.

Valeo : -3.5% with Cegedim (-2.7%) with Figeac Aero (-2.5%)

Renault : -2% with S30

rally : -1.5% with Colas, Lagardere

Air France-KLM : -1% followed by Faurecia, ADP, Engie



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