Yesterday’s rebound is likely to go unheeded on the Paris Stock Exchange, with Wall Street’s downturn due to renewed interest rate pressures moving the debate away from corporate earnings to refocus it on the Fed’s monetary policy.
In New York, the S&P 500 swung from a gain of more than 1% in session to a decline of 0.8% at the close. In question, the surge in the yield of the US 10-year bond to more than 4.2% on Thursday, its highest level since June 2008 after the “hawkish” remarks of Patrick Harker. The chairman of the Philadelphia Fed has indeed said that the central bank should raise rates “ well beyond by 4% to keep them at restrictive levels for a while to fight inflation.
” It is the US bond market that really drives the major markets, and while liquidity is an issue, the fact is that there are simply no buyers. summarizes Chris Weston, Head of Research at Pepperstone.
Released on Thursday, the weekly jobless claims figures fell to their lowest level in three weeks, reflecting continued tensions in the labor market, which is a problem for the Fed. The latter is indeed counting on a rise in the unemployment rate to bring down inflation.
Renault and EssilorLuxottica confirm
On the foreign exchange market, the pound sterling lost 0.3% to 1.1202 dollars after jumping Thursday on the announcement of the resignation of British Prime Minister Liz Truss. During the 45 days of his stay at 10 Downing Street, the British currency lost up to 8% against the euro and more than 10% against the dollar. The Conservative Party has given itself a week to find a successor among three candidates, but the two finalists could be known as early as Monday before an appointment next Friday. Former Chancellor of the Exchequer Rishi Sunak is the favorite, while Boris Johnson could try his luck.
Renault confirmed its objectives for 2022, while its turnover increased by around 20% in the third quarter, benefiting from a record price effect.
EssilorLuxottica did the same by reiterating its long-term outlook, after the increase in its turnover in the third quarter. The ophthalmic optics giant is thus counting on annual growth and at constant exchange rates of its turnover of around 5% over the period from 2022 to 2026. around 19% to 20% of turnover in 2026.
Kering announced a higher-than-expected increase in sales in the third quarter thanks to the dynamism of its activity in Europe, although the growth in sales of its strong Gucci brand was less than expected.
L’Oreal reported solid revenue growth in the third quarter as strong demand in Europe and the U.S. helped offset disruption in China due to health restrictions.
Vivendi announced a 0.6% growth in its turnover in the third quarter at constant exchange rates and perimeter, thanks to the growth of Havas, its advertising subsidiary.