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THE TREND
(Boursier.com) — Few initiatives in sight today on the Paris stock exchange before the Federal Reserve’s verdict on its key rates. The CAC40 is down slightly by 0.2% at the end of the morning at 7,470 points. Rarely have investors been so divided on the extent of the expected drop in American rates: 25 or 50 basis points. The hypothesis of the strongest loosening, 50 basis points, now collects a little more than 60% of expectations, according to the Fedwatch barometer of CME Group. However, the Fed has rarely started a cycle of reduction with such a strong drop.
Hopes for a 50 basis point cut have been boosted by a series of mixed data on the US labour market, as the Federal Reserve tries to bring inflation back towards its target without dealing a severe blow to the economy. The increase in retail sales in August, released yesterday, suggested that the US economy was resilient for much of the third quarter but still showed a sharp slowdown in consumer spending, after a 1% increase in July.
RISING VALUES
* Thales recovers nearly 2% to 144.7 euros after having lost 3.8% yesterday in the wake of information from ‘Bloomberg’ evoking the holding of discussions that could lead to a negotiated end to the conflict in Ukraine. According to the agency, citing sources close to the matter, discussions on how to negotiate a ceasefire have taken place among some of Kyiv’s allies. These sources, however, stressed that the decision on a possible truce would be up to Ukraine alone. Last Sunday, German Chancellor O. Scholz also declared that the time had come to discuss how to get out of the war more quickly.
* Crossroads gained 1.2% to 15.6 euros. As part of its 700 million euro share buyback program announced in February 2024, the group said it had already repurchased 38.5 million shares making up its capital between March 4 and September 16, 2024 for a total amount of 563 million euros. Carrefour has entrusted an investment service provider with a share buyback mandate to continue the program. The new purchase period will open on September 18, 2024. The shares thus repurchased will be retained with a view to their future cancellation.
* Ubisoft recovers 6% to 12.6 euros. The title of the video game publisher, which has been battered in recent times, benefits from a rating from BMO Capital which has raised its recommendation on the stock to ‘outperform’, targeting 22 euros. The market is rather divided on the title since, according to the ‘Bloomberg’ consensus, 13 analysts are ‘buying’, 10 are ‘neutral’ and 2 are ‘selling’. The average target for twelve months is set at 25.26 euros.
VALUES DOWN
* Carmat fell by almost 13% to 1.78 euros after launching a new capital increase with removal of the preferential subscription right at a price of 1.60 euros per share. The offer may be increased to a maximum of 13.6 ME in the event of full exercise of the extension clause and the over-allotment option. After this fundraising, the company’s financing requirement over a 12-month horizon will still be 36 to 38 ME.
* AXA is down 0.6% on 36 euros while remaining close to its historical peaks. Goldman Sachs has started monitoring the insurer with a “neutral” recommendation and a price target of 37.5 euros.
* Few other significant falls among CAC40 stocks even if luxury continues to weaken.
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