The Paris Stock Exchange gained a few points, supported by the firmness of Wall Street last night, while the quarterly season is gaining momentum. In Paris, three components of the Cac 40 have complied with the exercise, two others will join them this evening. The Americans Microsoft and Alphabet will do the same after the close of Wall Street.
Around 9:30 a.m., the Bedroom 40 gained 0.39% to 6,155.06 points in a business volume of around 200 million euros.
In New York, the S&P 500 rose 1.2% and the Nasdaq Composite 0.9% last night. Private sector activity in the United States contracted for the fourth consecutive month in October, according to the S&P Global PMI indices, suggesting that the Federal Reserve’s monetary tightening policy is beginning to bear fruit. These clues are Good news for investors anticipating a pause from the Fed early next year explains Edward Moya, senior market analyst at Oanda.
Fed, towards a slowdown in December?
The market continues to expect a 75 basis point hike in the Fed funds rate on November 2, but expectations for a move of the same magnitude in December tend to diminish. The European Central Bank is also expected to raise rates by 75 basis points on Thursday, despite PMI indices pointing to a recession in the euro zone. On the bond market, the yield on the US 10-year bond eased by 4 basis points to 4.1848%. Those of German and French bonds experienced similar variations.
The appointment of Rishi Sunak as British Prime Minister, which should be officially confirmed this morning, also contributed to this appeasement on rates, even if the pound sterling did not really benefit from it.
About 20% of S&P 500 companies released their quarterly results and more than half of them beat expectations. In addition to Microsoft and Alphabet this evening, the Gafam will be complete this week with Meta tomorrow, then Amazon and Apple on Thursday.
On the macroeconomic level, the Ifo index of the business climate in Germany in October will hold a place of choice this morning, ahead of that of the Conference Board measuring consumer confidence in the United States. Both stats are expected to decline.
Air Liquide and Interparfums in the spotlight
Liquid air increased by 3.5%. The industrial gases specialist confirmed its outlook for 2022, after seeing its sales increase by 41.3% in the third quarter, thanks in particular to the rise in energy prices.
Interparfums advance of 7.6%. The luxury perfume maker has raised its financial targets for 2022, after a surge in sales in the third quarter.
Remy Cointreau down 4.4%. The spirits group says it looks to 2022/23 with confidence after a 16.2% increase in sales in the second quarter, driven by a recovery in demand for its high-end cognac in China.
Plastic Omnium loses 3%. The automotive supplier confirmed its financial targets for 2022, as its activity rebounded strongly in the third quarter, beating analysts’ estimates.
Worldline down 2.7%. The electronic payment services giant has confirmed its annual objectives after seeing its turnover increase by 10% in organic data in the third quarter.
Orange down 2.4%. The telecom operator confirmed all of its financial targets for 2022, after the telecommunications operator performed broadly in line with analysts’ expectations in the third quarter.
Seb yields 2%. The manufacturer of small household appliances has lowered its forecasts for sales and operating margin for the current financial year after suffering in the third quarter from a sharp decline in sales in its main markets in Europe.