(Boursier.com) — THE TREND
The CAC40, which continued to slide at the start of the session to 5,857 points before recovering in the middle of the morning, finally ended up shy of 0.14% to 5,931 points. Nothing very convincing, while the Paris Stock Exchange has just shown a drop of 11% in the second quarter and more than 17% since January 1st.
Investment bank Goldman Sachs teams believe that stock markets face a high risk of further downside in the short term, as they still only expect a “mild recession”. Unless bond yields begin to fall in earnest and cushion rising equity risk premia due to recession fears, stock valuations could fall further, Goldman Sachs teams write, while earnings revisions are expected become negative in the second semester…
ECO AND CURRENCIES
The day was also marked by the publication of the final European PMI manufacturing indices… The Spanish manufacturing PMI slightly exceeded expectations at 52.6 in June, like the Italian index at 50.9. The French index stood at 51.4, against the FactSet consensus of 51. The German indicator was 52, in line with expectations. Finally, the European indicator remained close to expectations at 52.1.
Inflation is accelerating to new highs in the euro zone: According to preliminary data from Eurostat, the annual inflation rate in the region is estimated at 8.6% in June, against 8.1% in May, and a consensus of 8.5%. As for the main components of inflation, energy is expected to experience the highest annual rate in June (41.9%, compared to 39.1% in May), followed by food, alcohol & tobacco ( 8.9%, compared to 7.5% in May), industrial goods excluding energy (4.3%, compared to 4.2% in May) and services (3.4%, compared to 3.5% in May), details Eurostat. Sequentially, prices are up 0.8%. Core annual inflation, on the other hand, slowed slightly to 3.7%, against 3.8% in May and 3.9% consensus.
The euro ends weakly at $1.04 tonight. oil returns to $111 per brent.
RISING VALUES
EDF : +9% on rumors of a new internal reorganization followed by Innate (+6%) and DBV
Neoen : +5% with Sergeferrari, Robertet, Euroapi and Showroomprivé
Cegedim : +4.5% followed by Rallye, P&V, Parrot
Sodexo wins 4%. The operators welcomed the beautiful publication of the global collective catering giant. The group recorded consolidated revenue of 5.5 billion euros in the third quarter of its 2022 financial year, up 23.2% (+18.3% organically). Sodexo, which points out that its activity has returned to 97% of the pre-Covid level, confirmed that it anticipates organic growth for the whole of the 2022 financial year “around the bottom of the range of +15% to +18%” and an operating margin “close to 5% at constant rates”.
believe : +3.5% with Voltalia, Elior
Airbus picks up 2.8%%. It must be said that the European aircraft manufacturer has started the month of July very well since it has just won a historic order in China. Four of the major local companies will acquire nearly 300 aircraft with a total value of more than 37 billion dollars (at the list price)! In detail, Air China will buy 64 narrow-body A320neo family jets, and its subsidiary Shenzhen Airlines will take 32. China Eastern Airlines will buy 100 A320neos and China Southern Airlines will acquire 96 A320neos, delivered between 2024 and 2027. The carrier will separately lease 19 A320neos.
Thales : +2.5% with Chargeurs, Lagardère, Renault, Séché
Ipsen : +2% with BioMerieux
FALLING VALUES
Valourec deflates 9% with oil.
OVH fall of more than 8%. The cloud computing specialist aligns a third session of decline while many analysts are reviewing their copy on the file despite the increase in the annual revenue guidance of Octave Klaba’s company. The operators expected more and the prudence of the management does not encourage optimism. Citi thus downgraded the value to ‘neutral’ while lowering its target from 30 to 18 euros. SocGen has reduced its target from 30 to 23 euros but remains on the purchase’, while Morgan Stanley has reduced its target from 20 to 18.1 euros (‘underweight’).
Valneva : fall of 7% with Abivax (-5%)
FDJ drops 4.5%, victim of a Citi note which downgraded the value to ‘sell’ while cutting its target from 52 to 31 euros. The market is now fairly split on the issue since, according to the ‘Bloomberg’ consensus, 3 analysts are ‘buy’, 6 are ‘hold’ and 3 are ‘sell’. The average 12-month target is set at 40.5 euros.
XFab : -4% followed by CGG, Eramet
Guillemot : -3.5% with Amundi, Trigano, SoiTec
STM : -3% followed by Colas (-2.5%) with Orpea, Alten
BigBen : -2% with Bouygues and FNAC Darty.
Vivendi : -1% with Ipsos, Mersen, Capgemini, Rexel.