Posted Oct 20, 2022 12:10 PM
The Paris Stock Exchange is completely at a standstill, in a market characterized by the absence of initiatives on the part of investors. Economic uncertainties and tensions on the markets regained precedence over a good start to the earnings season against a backdrop of aggressive monetary policy by central banks to control inflation.
” All the major central banks will be announcing their decisions over the next couple of weeks, so it’s no surprise that [ces thèmes soient à nouveau dans l’actualité]writes Jim Reid, strategist at Deutsche Bank.
Mid-session, the Bedroom 40 is perfectly at 6,043.29 points (+0.04%) in a business volume of 700 million euros. The contracts future on US indices oscillate between balance for the Dow Jones and a decline of 0.5% for the Nasdaq 100. On Wednesday, Wall Street fell after two sessions of increases in a row. You’re here lost 5.5% on the market after revealing, after the close of Wall Street, a turnover below expectations, affected in particular by the rise in the dollar, as well as by the disruptions in deliveries and production.
Watch out for new disappointments
” Looking at the third quarter results, we think there will be more disappointments than the market currently anticipates.predicts Ellen Hazen, chief market strategist at FL Putnam Investment Management, on Bloomberg Radio. If you look at GDP for this year, it just keeps getting revised down and it’s really hard for companies to keep improving their profits in that environment. “, she explains.
Minneapolis Fed Chairman Neil Kashkari said a pause in rate hikes will not be an option as long as inflation continues to rise, even with the Fed funds rate at 4.5%. The market is pricing a 94.3% chance of a 75 basis point rate hike on Nov. 2 and 81.3% of a similarly large rate hike in December, according to CME Group calculations based on Fed funds futures contracts. On the bond market, the yield on American, British and German bonds continues to tighten.
Hermès and TotalEnergies at the top of the Cac 40
Hermes gains 1.6%. The luxury saddler reported a 24.3% growth in sales at constant exchange rates in the third quarter, driven by strong momentum in all businesses as well as the rebound in sales in China. Hermès reiterated its medium-term outlook, namely ” an ambitious goal of revenue growth at constant exchange rates despite economic, geopolitical and monetary uncertainties.
Pernod Ricard yields 1.4%. The spirits group expressed confidence in its outlook for the staggered 2022-2023 financial year, indicating that its ” growth should continue to be dynamic “after a start to the year” very encouraging “, which resulted in a 22% increase in its turnover in the first quarter. RBC analysts note that while sales in Asia turned out to be “ remarkable », the slowdown observed in the United States is « somewhat worrying “.
Veralia rises 3.5%. The glass packaging producer raised its annual adjusted EBITDA (gross operating surplus) target, after an increase in its results in the third quarter. The group is now targeting an adjusted Ebitda above 820 million euros this year, against a previous range of between 750 million and 800 million.
TotalEnergies rose 1.4% in the wake of the rebound of more than 2% in oil prices, carried by information relayed by Bloomberg according to which Chinese politicians are debating a possible shortening of the quarantine period imposed on foreign travelers. Crude prices suffered on Wednesday from the Biden administration’s decision to release 15 million barrels from strategic US stocks to stem rising prices.
Edenred takes 2.5%. The specialist in payment vouchers for the world of work raised its annual forecasts after the announcement of a turnover higher than analysts’ expectations for the third quarter. It is now counting on a gross operating surplus (Ebitda) of between 810 million and 840 million euros. He was previously targeting an Ebitda of between 770 million and 820 million euros.
Finally, nokia 7.5% drop. The network equipment manufacturer generated operating profit of 658 million euros, up 3.9%, in the third quarter, against more than 702 million anticipated by the Bloomberg consensus. The group has notably suffered from delays in signing licensing and patent agreements with mobile phone makers Vivo Communication Technology and Guangdong Oppo Mobile Telecommunications, according to Jefferies analysts.