The Paris Stock Exchange is moving towards a decline at the opening, investors walking on eggshells at the start of the most intense week of the season both in terms of companies and economic indicators.
Volatility therefore promises to be high on the markets as 175 companies in the S&P 500, ie more than a third of the total, are due to unveil their second quarter results in the coming days. Among this flood of publications, the Gafam will occupy a prominent place, and the setbacks of the social network Snap raise fears of a deterioration in the activity of companies dependent on online advertising revenue.
Three quarters of Cac 40 companies on the grill
Players in the automotive and oil sector will also be honoured, as will companies considered to be barometers of the health of the economy such as UPS, Caterpillar, Boeing and 3M. In France, 30 components of the Cac 40 will do the same, including the largest capitalizations of the Paris market such as LVMH, Hermès, TotalEnergies, Sanofi, L’Oréal or even Airbus.
The economy will not be outdone with the GDP of the euro zone and the United States in the second quarter, and of course the monetary decision of the Fed, on Wednesday, which should again opt for a 75 basis point hike in the federal funds rate. According to the Atlanta Fed’s GDP Now tracker, which traces expectations based on economic indicators, the market anticipates a contraction of 1.6% in the American economy, after a drop of the same magnitude in the first quarter, which would correspond to the definition of a recession with two consecutive quarters in contraction. However, the consensus anticipates a growth of 0.3% of the American GDP.
Plastic Omnium confirms, Faurecia disappoints
The latest PMI indices in the private sector in Europe and the United States for the month of July both reflected a contraction in activity. Thus, the Ifo index of the business climate in Germany for the same month will be particularly watched at the end of the morning.
Plastic Omnium confirmed its guidance for fiscal 2022, as its results beat analysts’ forecasts in the first half.
Forviathe automotive supplier born from the acquisition by Faurecia of its German competitor Hella, reported half-year profit below estimates due to the shortage of chips, the war in Ukraine and restrictions linked to the health crisis in China .
Eutelsat. The French satellite operator is set to take control of its British competitor OneWeb in a deal likely to be announced as early as Monday, Reuters reports citing two sources familiar with the talks.
Orange. The French operator and Masmovil have announced that they have signed an agreement to combine their activities in Spain, the result of exclusive negotiations started in this direction in early March 2022.
TF1 has obtained from UEFA all the rights to the matches of the French team (Nations League, friendly matches, qualifying matches for Euro 2024, the 2026 World Cup and Euro 2028).