THE TREND
(Boursier.com) — After a nice rise yesterday, the CAC 40 took a nosedive for this last session of the year, down 0.69% at midday, to 6,528 points. A few hours from the end of an exercise that will be remembered, the results are clearly not brilliant for the stock markets. Global equities have lost 20% of their value this year, their worst performance since the 2008 financial crisis. Europe’s Stoxx 600 index fared slightly better with an 11.7% decline, its biggest drop since 2018, while the CAC40 limits the damage with a decline of just over 8.5%.
Some places, such as London and Dublin, will only be allowed half a session today. But in Paris, we work until the end. The backdrop has not changed with investors still worried about a probable coming recession against a backdrop of soaring prices and central banks committed to fighting this surge in inflation at all costs.
The only new point at the end of the year is China’s abandonment of its “zero-Covid” policy and its positive but also negative consequences. On the one hand, the resumption of travel could give a boost to the global economy, but also spread the coronavirus beyond China’s borders. On the other hand, investors fear that increased demand from China will drive up commodity prices, prompting central banks to raise interest rates further to stem inflation.
The day is logically very calm in the absence of many operators. Business news is almost non-existent, while the Chicago PMI manufacturing index (3:45 p.m.) will be the only indicator to follow in the United States.
On the commodities front, a barrel of Brent fell 0.2% to $83.5. It is currently showing an annual gain of 7.3%, after jumping 50.2% in 2021. Finally, the euro is moving close to balance against the greenback, at $1.066, down 6, 4% since January 1.
ECO AND CURRENCIES
UNITED STATES :
– Chicago PMI manufacturing index. (3:45 p.m.)
– This was the last major European indicator to be unveiled in 2022. In this case, the preliminary consumer price index in Spain. The latter gave us a good surprise since annual inflation, harmonized with European standards, would have reached 5.6% in December, against 5.8% consensus, and after +6.7% in November. Sequentially, prices should nevertheless increase by 0.3% after a drop of 0.3% the previous month and against a consensus of +0.2%. The non-harmonised CPI index should progress by 5.8% after +6.8% in November, and against 6.1% expected by the market.
Iberian inflation has thus fallen by more than 5 percentage points since it reached the record level of 10.7% in July, driven by the continuous drop in electricity and fuel costs. Core inflation, which does not take into account volatile electricity and food prices, is said to have accelerated in December, reaching 6.9%. Despite the overall lull in price strength, inflation is likely to remain high next year and not return to the 2% target until 2025, the Bank of Spain warned earlier this month.
RISING VALUES
* Makheia Group soars 21% to 0.118 euros. The resolutions submitted to the Extraordinary General Meeting of shareholders of Makheia Group, meeting on second call on December 29, were adopted in their entirety. The shareholders notably approved the merger project providing for the transfer of the assets of the company NetMedia Group (absorbed company) to the benefit of the company. It is specified that in the context of this operation, the exchange ratio retained is 8,727 shares of the company for 1 share of the absorbed company. The General Assembly also adopted the change of corporate name of the company which is now called: NetMedia Group. With more than 30 ME in turnover for 2022 and a target of 40 ME for 2023, the new Group, thus formed, will enter the Top 5 of French independent communication groups.
* AB Science (+11.3% to 7.5 euros) announced that it had received approval from the American Food and Drug Administration (FDA) to initiate the confirmatory Phase 3 study with masitinib in the treatment of progressive forms of sclerosis in plates. This decision follows the authorizations received from several European countries, including the French Medicines Agency (ANSM). This authorization to start a confirmatory study in neurology is the third obtained from the FDA after the studies in Amyotrophic Lateral Sclerosis (AB19001) and Alzheimer’s disease (AB21004). This AB20009 study is in the active recruitment phase.
This is a phase 3 randomized double-blind study aimed at evaluating the safety and efficacy of masitinib administered at a dose of 4.5 mg/kg/day in patients with primary progressive multiple sclerosis ( PPMS) or non-active secondary progressive multiple sclerosis. AB Science recalls that masitinib is positioned in the progressive forms of the disease and that there is currently only one treatment for the primary progressive forms and none for the non-active secondary progressive forms, which respectively represent approximately 15% and 35% of multiple sclerosis cases, or approximately 500,000 patients in the United States and Europe.
FALLING VALUES
* No value of the CAC40 evolves in the green at noon.
* Company of the Alps (-1.2% to 14.5 euros). After concluding a syndicated RCF (Revolving Credit Facility) line in the amount of €300 million in June 2022 and a term credit agreement for €200 million on December 16, CDA concluded, on December 28 December, a relaunch participatory loan for an amount of €42.7 million with an 8-year maturity. This loan is intended to participate in the financing of the investments planned by the group in the coming years. It does not provide for any constraints regarding future distributions of dividends or external growth operations of the group. After a grace period of 4 years, the loan will be repaid on a linear basis between the 4th and 8th year.
* DeltaDrone (-9% to 0.005 euros). Majority shareholder of Delta Drone International, an Australian company listed on the ASX Sydney stock exchange, DeltaDrone announced the sale of 16.77% of the capital to Australian professional and institutional investors. Carried out through Baker Young Advisory, the transaction involves 85,812,067 shares sold at a unit price of AU$0.005/share. Following this operation, Delta Drone SA remains the leading shareholder of Delta Drone International.