THE TREND
(Boursier.com) — After finally missing the rebound at the end of the session yesterday, the CAC40 remains in the red despite a new recovery attempt at the start of the day. Briefly back above 6,100 points this morning, the Paris Stock Exchange index now loses 0.9%, back to 6,000 points and is currently in a sixth negative session.
This lack of rebound is of course linked to the expectation of the Fed’s monetary meeting which begins on Tuesday. On Wednesday evening, investors will only be interested in the Fed’s monetary statement (8 p.m.) and its leader Jerome Powell’s press conference (8:30 p.m.). The CME Group’s real-time FedWatch tool shows an 84% chance of further monetary tightening of 75 basis points, which would be the third in a row and take the fed funds rate between 3% and 3.25%. The probability of an even stronger move of a whole percentage point, bringing the range between 3.25 and 3.5%, is 16%.
The first major central bank on deck this week, the Swedish central bank pulled out the heavy artillery this morning by raising its key rate by one percentage point to 1.75%. The Riksbank had not opted for such an aggressive move for more than three decades. The market was expecting a rise of 75 basis points. The Riksbank now anticipates a contraction of 0.7% in the Swedish economy next year, against growth of 0.7% previously, while inflation should still average 8.5%.
RISING VALUES
* The French Games (+1.8% to 31.9 euros) entered into exclusive negotiations for the acquisition of the ZEturf group. This acquisition project is part of the FDJ group’s strategy to strengthen its presence on the French online gaming market open to competition, particularly in activities in which it is not currently present, horse racing betting. and poker. Founded in 2001, the ZEturf group is present in online horse betting as well as online sports betting under the ZEbet brand. With around a hundred employees, ZEturf recorded bets of nearly 800 million euros in 2021, including more than 100 ME in B2B. Online horse betting represents more than 50% of the Group’s B2C bets, which positions it as the 2nd operator in this segment in France, with a market share of around 20%. ZEturf is also present on the Dutch, Belgian and Spanish markets.
* ADP Group (+0.6%) benefits from a rating from Barclays which raised its recommendation on the file to ‘online weighting’ while raising its target price from 118 to 136 euros. Despite this favorable rating, the market remains mostly ‘negative’ on the stock since, according to the ‘Bloomberg’ consensus, 2 analysts are ‘buy’, 9 are ‘hold’ and 11 are ‘seller’. The average 12-month target is set at 129.83 euros.
* TF1 and M6 rose by about 1% after the new sanction the day before linked to the confirmation of the failure of their merger.
* No significant increases among the values of the CAC40.
FALLING VALUES
* Eutelsat fell 2% below 9 euros. In a note dedicated to the satellite industry, Bryan Garnier initiates value monitoring with a ‘sell’ notice and a target of 7.5 euros.
* Thales (-2%) and Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), and its partners have been selected by the European Commission to lead the EROSS IOD program dedicated to in-orbit services. EROSS IOD aims to validate, through a first European demonstration mission planned by 2026, the technologies necessary for future robotic assistance operations in orbit, such as rendezvous, capture, stowage, refueling and exchange of satellite payloads.
* Stellantis (-0.4%) announced an agreement with its partner Punch Powertrain to increase production in Turin, Italy, of electrified dual-clutch gearboxes for hybrid and plug-in hybrid electric vehicles.
* Euronext stumbles 5.5% to 65.2 euros in the morning, victim of an analyst note. Speaking of a “value trap”, Credit Suisse downgraded the stock market operator’s title to “neutral” while lowering its target from 89 to 77 euros.
* Among the biggest declines in the CAC40, CapGemini, ArcelorMittal Where Teleperformance lose about 3%.