The Cac 40 falls by 2%, L’Oréal and Kering the red lanterns of the flagship index


The Paris Bourse has completely erased its rebound from the day before, the Cac 40 returning below the threshold of 6,000 points for the first time since Monday. The tensions on the interest rate markets bear witness to fears of a lasting offensive action by central banks to control inflation. In this context, investors are questioning the solidity of companies, punishing those whose accounts are only in line with expectations.

Around 2:30 p.m., the Bedroom 40 fell 2% to 5,964.53 points in a volume of 1.1 billion euros. The contracts future on American indices yielded between 0.7% for the Dow Jones and 1.3% for Nasdaq 100. Snap plunged 28.5% in pre-market after posting the weakest quarterly revenue growth in its history, which again puts the social network sector under pressure amid falling advertising revenues. Meta in particular lost 4.2% and Alphabet 2.1%.

Scarecrow of inflation spooks markets

On the bond market, the yield of the 10-year US bond crossed the 4.3% mark for the first time since 2007. That of the German Bund of the same maturity exceeded 2.5%, unheard of since 2011. .

Scarecrow of global inflation continues to scare markets “, summarize the strategists of Societe Generale.

Unveiled on Thursday, the figures for weekly jobless claims in the United States fell to their lowest level in three weeks, reflecting persistent tensions in the labor market, which constitutes a problem for the Fed. The warning was not long in coming, Patrick Harker, the president of the Philadelphia Fed declared that the central bank should raise its rates ” well beyond by 4% at the end of the year without closing the door to further tightening to fight inflation. Interest rate swap traders expect the Fed Funds rate to exceed 5% by mid-2023. Regarding the ECB, they now assess the probability of a 75 basis point increase in the “refi” next week at more than 90%.

L’Oréal and Kering sanctioned

On the foreign exchange market, the pound sterling yielded 1.2% to 1.1101 dollar after having briefly jumped Thursday at the announcement of the resignation of British Prime Minister Liz Truss. During its 44 days 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 for him from among three candidates who will be submitted to the vote of the “Tory” deputies. The contenders will need to gain the support of 100 MPs in order to compete.

The first round of voting is scheduled for Monday afternoon and the third-place candidate is expected to be pressured to step down, which could lead to the winner’s name being known before Friday’s deadline. If former Chancellor of the Exchequer Rishi Sunak and Penny Mordaunt are expected to run, no candidate has yet officially declared themselves. According to Times, Boris Johnson would be tempted by a “comeback” and would benefit from the support of many Conservative MPs. The yield on the British 10-year gilt rose 15 basis points to 4.15% following rumors that the detailed presentation of the British budget could be postponed due to the process of appointing the new Prime Minister.

L’Oreal loose 6.1%. The cosmetics giant reported solid revenue growth in the third quarter. But the brand’s customers seem to be focusing on consumer products, which marks a turnaround while the high-end pole (Lancome Paris, Ralf Lauren), the group’s traditional engine and more profitable, is notably penalized by the confinements. in China.

Kering fell 4.8% The luxury group announced a higher-than-expected increase in turnover in the third quarter thanks to the dynamism of its activity in Europe, but the growth in sales of its strong brand Gucci was less important than ‘expected. Moreover, the group’s sales growth is lagging behind that of its competitors.

Vivendi gives up 4.4%. The media and communication group announced a 0.6% growth in its turnover in the third quarter at constant exchange rates and scope, thanks to the growth of Havas, its advertising subsidiary, but Canal + fell.

Renault loses 2.6%. The manufacturer confirmed its objectives for 2022, while its turnover increased by around 20% in the third quarter, benefiting from a record price effect. The title, which rose by 5% this week, especially since the group will hold its investor meeting on November 8, including details on the evolution of the Alliance with Nissan and the new medium-term prospects.

EssilorLuxottica down 4%. The ophthalmic optics giant has however reiterated its long-term outlook, after the increase in its turnover in the third quarter. If the sales are higher than expected, Bernstein underlines that they are contrasted according to the areas, with a weak progression in North America.

Finally, Voltalia earns 2.5%. Oddo BHF raised its recommendation on the stock from “neutral” to “outperforming”.




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