Posted Oct 20, 2022, 8:35 AM
The decline on Wall Street after two sessions of increases gave the signal for retreat in Asia this morning and Europe looks sluggish. Tensions on the bond market were revived by the persistence of inflationary pressures on the Old Continent, bringing the theme of the tightening of monetary policies back to the center of the debates.
In New York, the S&P 500 lost 0.67% and the Nasdaq Composite 0.85% despite good quarterly performances from Netflix and United Airlines. After the close, IBM raised its full-year guidance after better-than-expected results, while Tesla reported quarterly revenue below expectations due to disruptions in shipments and production. The title gives up more than 6% in after-market transactions. The yield on the US 10-year bond hit a 14-year high of 4.1502% on Wednesday, dragging the dollar down in its wake.
Kashkari: the Fed unable to take a break
Minneapolis Fed Chairman Neil Kashkari said the Federal Reserve would not be able to pause its rate hikes if inflation continued to rise even with the Fed funds rate at 4. 5%. The American central bank has also indicated in its Beige Book that the increase in the cost of mortgages and real estate prices is slowing down demand. She also notes that companies have pointed out that pricing pressures remain strong. The market is expecting a 75 basis point hike in the Fed funds rate on 2 November.
In Asia, the Hong Kong Stock Exchange’s Hang Seng is poised to close at a 13-year low on fears of slowing growth amid a Chinese Communist Party Congress meeting in Beijing. The CSI 300 of the main capitalizations of Shanghai and Shenzhen is hovering around equilibrium. Politicians in the country are debating whether to shorten the quarantine period imposed on foreign travelers, Bloomberg reports, citing sources familiar with the discussions. Information that could explain the rebound of more than 1% in oil prices, which had suffered from the decision of the Biden administration to release 15 million barrels of American strategic stocks in order to stem the rise in prices.
Pernod Ricard and Hermès confident
Pernod Ricard expressed confidence in its prospects for the staggered 2022-2023 financial year, indicating that its ” growth should continue to be dynamic “after a start to the year” very encouraging “, which resulted in a 22% increase in its turnover in the first quarter.
Hermes reported 24.3% revenue growth at constant exchange rates in the third quarter, driven by strong momentum across all businesses as well as the rebound in sales in China. The saddler reiterated its medium-term outlook, namely ” an ambitious goal of revenue growth at constant exchange rates despite economic, geopolitical and monetary uncertainties.
Edenredraised its full-year guidance after reporting third-quarter revenue above analysts’ expectations. The specialist in payment solutions in the world of work is now counting on a gross operating surplus (Ebitda) of between 810 million and 840 million euros. He was previously targeting an Ebitda of between 770 million and 820 million euros.
same for me Veralia which raised its annual adjusted EBITDA (gross operating surplus) target, after an increase in its results in the third quarter. The group is now targeting an adjusted Ebitda above 820 million euros this year, against a previous range of between 750 million and 800 million.