THE TREND
(Boursier.com) — After already three previous sessions in the red, the CAC40 is accelerating its decline today, dropping 1.5% at the end of the morning below 7,200 points. The Parisian index even lost almost 2% a little earlier, notably with a banking sector in the front line of declines. The deterioration of economic indicators linked to the rise in interest rates and in particular its consequences on residential and office real estate are indeed new elements to take into account for the banking sector.
In the United States, the “minutes” of the Fed showed that almost all central bank officials expect further rate hikes after the break in June, enough to be cautious on the equity markets! The intensification of the Sino-American trade war is also weighing on the Parisian market, Beijing having warned on Wednesday that the export restrictions on certain metals necessary for the manufacture of semiconductors were only a “beginning”.
Two indicators on American employment will be published at the beginning of the afternoon, followed by the publication of the ISM for services in the United States, three elements which will make it possible to gauge the persistence of inflationary pressures in the rest of the economy.
RISING VALUES
* Stellantis (+0.4% to 16.2 euros) unveiled the first of its four new global electric platforms. Called STLA Medium, this automotive platform is intended for electric versions of sedans, crossovers and SUVs in the C and D segments of several brands of the group. Stellantis announces a range of more than 700 km and improved performance. Up to two million vehicles per year can be assembled on STLA Medium in several production sites around the world, starting with Europe.
* Adocia (+12%) signed an exclusivity agreement for the benefit of Sanofi on M1Pram. The payment to Adocia of the sum of 10 million euros gives Sanofi an exclusive right to negotiate a worldwide partnership on the product. M1Pram is an innovative combination of insulin and pramlintide developed by Adocia which aims to become the fast-acting insulin of choice for people with diabetes and obesity.
* Saint Gobain resists (+0.2% to 54.9 euros) while the broker HSBC cut its target from 85 to 75 euros, while remaining in the purchase.
FALLING VALUES
* Largest drop in the CAC40, BNP Paribas lost 3% to 55.6 euros. Agricultural credit And Societe Generale also fell by just over 2%.
* Publicis now yields 0.5% to 71 euros after suddenly taking more than 5%. A fit of fever to be linked to information from ‘Challenges’ which evokes a potential interest from Bolloré. “Publicis takes off on takeover rumors mentioned in an article in Challenges, even if the information remains to be taken with a grain of salt,” Mikaël Jacoby, head of European equity trading at Oddo BHF Corporate & Markets. In an article entitled “The real-false new life of Vincent Bolloré”, the magazine quotes two investment bankers who explain that the businessman could “re-study the Publicis theme” in order to employ the few 17 billion euros of cash from the Bolloré group. The project had been studied twice and abandoned “for financial or human resource issues”, specifies Challenges.
* LVMH fell 2% to 931 euros despite Goldman Sachs which revalued the luxury group from 920 to 970 euros (‘purchase’).
* Thales lost 1.6% to 133.3 euros. Deutsche Bank adjusted the slider from 154 to 156 euros (‘buy’).