Cleared yesterday’s rebound on the Paris Stock Exchange as the pound’s fall this morning reflects the limits of the Bank of England’s (BoE) announcements to stabilize the debt market. The BoE’s emergency intervention led to a rebound in global financial markets on Wednesday, including a 2% rise in the S&P 500.
But the stock market event of the day is undoubtedly the introduction of Porsche on the Frankfurt Stock Exchange, the final price of which has been set at 82.50 euros, i.e. the top of the indicative range presented by Volkswagen, and a valuation of 75 billion euros. The title of the manufacturer of the 911 opened at 84 euros, up 1.8%, before returning to around 82.70.
At 9:35 a.m., the Bedroom 40 lost 1.67% to 5,668.77 points.
The Old Lady of Threadneedle Street announced on Wednesday that she would buy up to £5bn a day of long-term government bonds until October 14, making a total of around £65bn . This decision follows the announcement by the British government of a program of tax cuts financed by debt, which was very badly received by the markets.
Do not forget the “hawkish” tone of the Fed
The pound recovered before easing after the intervention of the BoE, while the yield on the British 30-year gilt fell by 105 basis points, not seen since at least 1992. The movement s extended to the United States where the cost of US 10-year debt fell 20 basis points to return to around 3.77% after briefly crossing the 4% threshold for the first time since 2010 on Wednesday morning.
Wall Street strategists, however, are warning of a wave of euphoria in the face of Wednesday’s bond market rally, aptly reminding that the hawkish signals sent by Fed officials are what really matters. ” The trace of the gilt (British government bond) is noticeable on the whole of the US Treasuries market during the last week “recalls Bob Miller, head of bond markets for the United States at BlackRock. ” I don’t think what we’ve seen in the bond market reflects a change in the Fed’s approach. “Abounds Steve Boothe, manager at T. Rowe Price.
Accor raises its forecasts, net loss for Orpea
Fed officials continue to hammer home their “hawkish” message, including Atlanta branch president Raphael Bostic, who supports a 125 basis point hike in the fed funds rate by the end of the year in an attempt to regain control of inflation.
The bond market could react at the beginning of the afternoon to the first estimate of the evolution of consumer prices in Germany in September. The consensus formed by Bloomberg expects an increase to 10.2% over one year in harmonized data from the European Union, after 8.8% in August. Also to follow is the second estimate of US GDP growth in the second quarter, which should be confirmed at 1.5% year-on-year.
Accor gains 2.1%. The hotel group has raised its profit forecast for 2022, while announcing that it will sell its French headquarters in a sale-leaseback transaction.
Orpea 9.5% drop. The operator of retirement homes reported a net loss of 269 million euros in the first half, against a profit of 102 million euros a year earlier. The group said that ” the downward trend in the financial performance of the activities observed in the first half of 2022 could be amplified in the second half, given the additional volatility observed in energy prices “.
Solutions 30 plunged 15.4%. The digital assistance service provider posted a net loss of 11.3 million euros in the first half, during which its gross operating surplus (Ebitda) fell by 40.2%, to 29.6 million euros.