Hesitant start to August for the Cac 40, spotlight on manufacturing activity


After signing its best monthly performance since November 2020, the Paris Stock Exchange should start August on a hesitant note in reaction to mixed PMI indices in China, but reflecting a slowdown. The publication on Monday of the PMI and ISM indices of activity in the manufacturing sector in Europe and the United States should provide a broader overview of recent economic developments. On the good news side, the first shipment of grain from Ukraine was due to leave the port of Odessa this morning, according to the Turkish Defense Ministry.

Financial markets reacted positively to stronger-than-expected eurozone GDP growth in the second quarter, as well as to the feeling that the US Federal Reserve might reduce the extent of its next monetary tightening.

An optimistic interpretation

This interpretation of the future evolution of the US central bank’s monetary policy is considered optimistic to say the least by economists, especially since Neel Kashkari, the president of the Minneapolis Fed, reaffirmed on Sunday that the main objective of the Federal Reserve is to bring inflation back towards 2%, while his colleague from the Atlanta Fed, Raphael Bostic, declared shortly before that much remains to be done in terms of monetary tightening.

Jonas Goltermann, market economist at Capital Economics, said he was surprised by the market’s “dovish” perception of the Fed’s latest comments. In our view, the renewed risk appetite in response to the Fed is largely due to a combination of wishful thinking and strained positionshe explains, adding that, according to U.S, there’s not much to Jerome Powell’s comments to suggest monetary officials will back off aggressive rate hikes as inflation remains well above target “.

HSBC raises profitability target

The week which begins will be animated by the monetary decisions of the Bank of Australia and the Bank of England, by the OPEC meeting, which should decide on the evolution of its production for the month of September, as well as by the July employment report in the United States.

Company publications will also continue with around 170 S&P 500 companies, including Capterpillar, AMD, Starbucks and Uber, not to mention Europeans BP, Merck, BMW, Infineon, Bayer, Beiersdorf, Lufthansa and Asians Alibaba and Nintendo. In France, five components of the Cac 40 will unveil their quarterly reports, namely Bouygues, Axa, Société Générale, Veolia Environnement and Crédit Agricole.

The banking sector should be watched after the Chinese-British’s better-than-expected quarterly results HSBC, which has benefited from the rise in interest rates and has pledged to bring its dividend back to the level before the health crisis as soon as possible. The leading European bank has also raised its profitability forecasts, counting on growth in its income.

vinci. Grupo Aeroportuario del Centro Norte (OMA), announced that it had received a letter from the investment fund Fintech Advisory regarding the indirect sale of 29.9% of the capital of the Mexican airport group to a subsidiary of Vinci Airports for a total amount of 815, 4 million dollars (797.3 million euros).

Bollore published sharply improved results for the first half, supported in particular by the good performance of its transport and logistics activities.

Ipsen and Marengo Therapeutics announced that they have entered into a strategic partnership to develop two clinical-stage precision immuno-oncology treatment candidates.




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