Mid-Session Paris: the CAC 40 keeps on rising

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THE TREND

(Boursier.com) — The CAC 40 remains on course for the rise that began at the opening this morning, with a gain of 0.55% to 5,955 points, after a brief foray into negative territory at the very start of the session (at 5,901.38 points).

Investors seem to be ignoring the confirmation of the sharp deterioration in the Chinese economy, or else this was probably already priced in… It contracted sharply in the second quarter due to the impact of multiple lockdowns: GDP fell by 2.6% over the April-June period compared to the previous three months. In the first quarter, GDP in the world’s second-largest economy rose 1.4% according to revised official data. On an annual basis, growth thus fell to 0.4%, whereas it reached 4.8% in January-March.

Investors are also laughing at the resignation of Italian Prime Minister Mario Draghi, which nevertheless increases the risk of a domestic political crisis in the continent’s third largest economy, at a time when interest rates are rising. The Milan Stock Exchange is progressing.

This morning, market operators preferred to remember that in the United States, several central bank officials have calmed things down, like Governor Christopher Waller, who rejected the hypothesis of a rate hike of 1%. Their remarks weaken the hypothesis of an increase of 100 basis points, deemed more and more credible in recent sessions by investors.

Something to camouflage somewhat in the minds of investors the first rather disappointing results of the major American banks: JP Morgan and Morgan Stanley announced a fall in their profits in the second quarter, which reinforces fears of an economic recession.

On the program of the day, the monthly retail sales figures, those of industrial production and the first estimate of the consumer confidence index of the University of Michigan.

ECO AND CURRENCIES

UNITED STATES :
– Import and export prices. (2:30 p.m.)
– New York Fed Empire State Manufacturing Index. (2:30 p.m.)
– Retail sales. (2:30 p.m.)
– American industrial production. (3:15 p.m.)
– Stocks and sales of companies. (4:00 p.m.)
– Preliminary index of US consumer sentiment measured by the University of Michigan. (4:00 p.m.)

The euro/dollar parity reached $1.0018 this morning. A barrel of Brent is trading at $99.89. An ounce of gold is traded at $1,707.

RISING VALUES

AXA (+0.70% to 20.90 Euros) Germany will sell the portfolio to Athora Germany, for an amount of 660 million euros, representing a multiple of 18x the profits of 2022E. The operation will result in a total amount in cash net of tax estimated at 0.4 billion euros for AXA SA AXA intends to compensate for the dilution of profits resulting from the disposal by a share buyback which will be launched after the closing of the operation. As part of the transaction, AXA IM will enter into an agreement to provide asset management services to Athora until 2028. AXA and Athora are committed to ensuring a smooth transfer of the portfolio and, as such, AXA Germany will provide administrative support services to Athora Germany until 2028. Thereafter, Athora Germany will take over contract management, with all warranties, terms and conditions unchanged. The sale will have a non-material impact on the net income of the AXA Group in the 1st half of 2022. The transaction is expected to reduce the operating income5 of the AXA Group by around 36 million euros per year from 2023.

Novacyt (+9.70% to 1.40 Euro) announces that its exsig COVID-19 Direct Real-Time PCR test has been approved in the UK under the UK Medical Device Safety Agency’s 2021 regulations. The exsig COVID-19 Direct Real-Time PCR test is designed to detect a SARS-CoV-2 gene target within ORF1ab and, like all of the company’s direct PCR products, eliminates the need for manual or automated extraction to dramatically improve lab flow and reduce costs. Additionally, the test is designed for use on an open platform and therefore the company’s q16 and q32 instruments, as well as other validated systems. This test is the company’s fifth PCR product to be listed on the CTDA’s Register of Approved Products.

FALLING VALUES

Genomic Vision (-13% to 0.10 Euro): logical profit taking after yesterday’s soaring 91%…

THEY PUBLISHED THEIR TURNOVER/RESULTS…

SMTPC, NHOA, Thermador

THE LATEST “RECOS” FROM ANALYSTS…

TotalEnergies : JP Morgan maintains its “neutral” recommendation while revising its target price upwards to 59 Euros, against 56 previously.

Dassault Aviation : JP Morgan starts tracking at “neutral” with a target of 162 Euros

MARKET INFORMATION

Noxxon Pharma bECOMES TME Pharma.

IN SHORT

Saffron : already 1 million flight hours for the Rafale’s M88 engine.

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