THE TREND
(Boursier.com) — The CAC40 is losing the ground gained yesterday, down a little more than 1% this Friday midday at around 7,030 points with the luxury compartment strongly penalizing the trend. This halt to the stock market rise also comes after Jerome Powell’s latest comments which broke the positive dynamic on Wall Street yesterday at the end of the session. He said Fed officials were “not convinced that interest rates are high enough to combat inflation.”
Not yet enough to shake investors’ convictions about the next Fed meeting on December 13: they are still 90% betting on the status quo on interest rates according to the CME Fedwatch barometer.
The latest central bank meetings have given investors hope for an end to rate increases and a significant easing of monetary policies in 2024, and monetary policy makers are now seeking to qualify this optimistic perception of the markets. Indeed, the resistance of the American economy to rate increases raises doubts about the impact of monetary policy…
RISING VALUES
* Valneva jumped 8% to 6.8 euros, boosted by the authorization of its vaccine against chikungunya by the American FDA. With this green light, IXCHIQ becomes the world’s first authorized chikungunya vaccine to address this unmet medical need and the third vaccine that Valneva has developed from early stages of research through to market. Valneva plans to begin marketing IXCHIQ in the United States early next year, while continuing its preparatory work for the Advisory Committee on Immunization Practices (ACIP) vote at the end of February. Akwel (+4.20% at 15 Euros) recorded a turnover of 248.7 ME in the third quarter of 2023, down slightly by -0.9% compared to 2022 but up by +9.2% to constant scope and exchange rates. The negative exchange rate impact is even more significant this quarter than during the first six months of the financial year. Over the first nine months of the financial year, Akwel’s turnover stood at €781.9 million, up +5.8% compared to 2022 and +12.3% at scope and exchange rate. constant, with growth still driven by activity in France and Europe.
* Strongest increase in the CAC40, TotalEnergies increases 1.7% to 62.4 euros. Among the latest broker opinions, Jefferies had adjusted its target from 70 to 69 euros while remaining a purchase.
FALLING VALUES
* Pernod Ricard And Remy Cointreau stumble by 5%, weighed down by the warning of Diageo. The British giant issued a profit warning amid a sharp slowdown in growth in its Latin America and Caribbean division, as customers in that region buy less and switch to cheaper brands. The maker of Johnnie Walker whiskey and Smirnoff vodka now expects lower growth and profits in the first half of its financial year compared to the last six months of the previous financial year, due to a significantly weaker outlook in the region, which represent nearly 11% of its net turnover.
* The luxury compartment is struggling: LVMH And Kering fell by almost 4% and Hermes by 2.5% after the disappointing publication by Richemont. The owner of Cartier, Piaget and IWC revealed falling results for the first six months of its financial year as revenues from luxury watches fell unexpectedly and consumers curbed their spending. Over the six months ended at the end of September, the Swiss group recorded a profit of 1.51 billion euros, an operating profit from continuing activities of 2.7 billion euros (-2%), for a turnover in increase of 6% to 10.22 MdE. Accounts lower than the consensus.
* Air France KLM significantly underperformed at the end of the week with shares dropping 4.6% to 11.86 euros. In addition to the sharp decline in the market, the airline is paying the price of a note from Exane BNP Paribas which downgraded its recommendation to ‘underperform’ by targeting 10 euros. The analyst believes that airlines will face costs that will be difficult to counter. The broker also notes that adverse macroeconomic factors are putting pressure on returns. There is no indication that business travel will increase significantly in 2024, the specialist also emphasizes.
* Down sharply by 7% to 12.7 euros, Worldline erases its nice rise yesterday. The fault lies with UBS, which downgraded the payment specialist to ‘sale’ while cutting its target from 48 to 12 euros.