THE TREND
(Boursier.com) — The CAC 40, announced slightly in the red by the precedence indicators, seemed to want to recover somewhat as 8:30 a.m. approached, without guaranteeing an opening in the green at 9 a.m…. The trend remains cautious overall. Investors will be attentive in the morning to the publication of the “flash” PMI indices in Europe, considered to be good indicators of economic activity and which should signal a contraction for the month of October.
But the meeting of the week is set for Thursday with the ECB which should opt for the status quo on its rates but its speech on the future evolution of its monetary policy will be followed carefully. This is the question that has been driving investors for weeks… Also on the agenda, the publication, still on Thursday, of the first estimate of American GDP for the third quarter and that, on Friday, of consumer price figures in the States -United for September, two determining indicators before the Federal Reserve’s next monetary policy decision on November 1st.
On the values side, Orange, Hermès, Virbac and Interparfums will be in the spotlight from the opening, following their quarterly publications.
WALL STREET
Wall Street hesitated on Monday, remaining feverish before the quarterly publications of technological ‘megacaps’, and while yields marked time on the bond markets. The S&P 500 dropped another 0.17% to 4,217 pts, the Dow Jones fell 0.58% to 32,936 pts, while the Nasdaq gained 0.27% to 13,018 pts, erasing its sharp opening drop.
ECO AND CURRENCIES
German consumer sentiment continued to deteriorate in November. The index calculated by the GfK institute went from -26.7 (revised) in October to -28.1 in November while economists anticipated -27.0.
France :
– Markit preliminary manufacturing PMI index in France. (09:15)
– Preliminary Markit PMI services index in France. (09:15)
UNITED STATES :
– Markit Preliminary US Composite PMI Index. (3:45 p.m.)
– Markit Preliminary US Services PMI. (3:45 p.m.)
– Markit preliminary US manufacturing PMI. (3:45 p.m.)
– Richmond Fed manufacturing index. (4:00 p.m.)
Europe:
– Markit preliminary manufacturing PMI in Germany. (09:30)
– Preliminary Markit PMI services index in Germany. (09:30)
– Markit Preliminary Eurozone Composite PMI. (10:00 a.m.)
– Markit Eurozone preliminary manufacturing PMI index. (10:00 a.m.)
– Preliminary Markit Eurozone Services PMI. (10:00 a.m.)
– Preliminary British composite CIPS PMI index. (10:30 a.m.)
– Preliminary UK Services PMI CIPS Index. (10:30 a.m.)
– Preliminary UK manufacturing PMI CIPS index. (10:30 a.m.)
The euro/dollar parity reached $1.0682 this morning. A barrel of Brent is trading at $90.06. An ounce of gold sells for $1,977.
VALUES TO FOLLOW
Interparfums posted an increase of 10% in its quarterly turnover to 214.6 ME, with 9-month turnover increasing by 19% to 610.7 ME. The company confirms its annual turnover target of around €800 million, although it has noted, since the summer, a slowdown in the strong momentum recorded since the end of 2021.
Orange :LQ3 revenues amounted to €10.99 billion, up 1.8% from last year on a comparable basis and in line with analysts’ expectations. Over the period, the group presented an EBITDAaL (profit before interest, taxes, depreciation and amortization after rental) higher than market expectations, thanks to an increase in prices and the implementation of its recovery plan. EBITDAaL thus increased by 1.4% over the period, to 3.596 billion euros, above expectations of 3.59 billion euros according to a market consensus.
Virbac presented a turnover of 314.8 million euros for the third quarter of 2023, a clear increase of +7.8% at constant exchange rates and +3.3% as published, compared to the same period of 2022. All geographic zones contributed to this dynamic, first and foremost Europe, whose turnover increased by +6.4% at constant rates, driven both by the Benelux countries (+14 .9% at constant rates) and France (+4.6% at constant rates) where the petfood range recorded double-digit growth and the countries of Southern Europe, particularly Spain (+23.9% at constant rates) where sales of the ruminant vaccine range are growing strongly. The turnover at the end of September stood at €925.3 million, an overall increase of +0.4% compared to the same period of 2022 and +2.8% at constant exchange rates. Given the significant rebound in sales observed in the third quarter, a higher margin on production costs than expected as well as the confirmed delay in certain expenses, particularly R&D, Virbac is now expecting growth in turnover. at constant exchange rates and scope in a range between 2% and 4% (between 0% and 4% previously). The ratio of “current operating income before depreciation of assets resulting from acquisitions” to “turnover” should now consolidate in a range between 13.5% and 14.5% at constant exchange rates (12% and 13% previously).
Hermes recorded over the three months ended the end of September a consolidated turnover of 3.365 billion euros, up 15.6% at constant exchange rates, despite a particularly high basis of comparison in Asia. The consensus was for growth of 13.2%. Although slowing down, after +27.5% in the second quarter and +23% in the first, activity is once again more resilient than feared by investors. Revenues from the leather goods branch increased by 15.8% compared to 12.5% expected by analysts. At the end of September, sales amounted to €10.063 billion and increased by 22% at constant exchange rates and by 17% at current exchange rates compared to the same period in 2022. At the end of September 2023, the evolution of parities monetary represents an unfavorable impact of 420 ME on turnover.
LATEST SALES/RESULTS PUBLICATIONS…
Ecoslops, Idsud, Memscap, Charwood Energy
THE LATEST “RECOS” FROM ANALYSTS…
Jefferies maintains its ‘neutral’ opinion on Kering with a target price which goes from 440 to 420 euros and also remains neutral on EssilorLuxottica aiming for a price of 175 euros.
MARKET INFO
Kerlink reaches agreement to restructure its debt
Smart Good Things Holding: suspension of share trading
IN SHORT
Lhyfe: long-term electricity sales contract with Kallista Energy
Omer-Decugis & Cie: acquisition of Champaris France
Sopra Steria: SSCL soon to be a 100% subsidiary