The Cac 40 has completely erased its June losses, luxury and banks acclaimed


The Paris Stock Exchange is on track to sign its first monthly increase since March, and its best month since November 2020. Good corporate publications, particularly in the luxury and banking sectors, are indeed taking precedence over fears of recession . The market is also betting that the Fed will be less restrictive after two consecutive quarters of contraction in the US economy.

Global financial markets have bounced back after a tough June as investors believe that much of the bad news about soaring prices and slowing growth is now largely priced in. However, inflation hit a new high of 8.9% year on year in July in the eurozone, suggesting that the ECB will have no choice but to react strongly in September, with the key is an increase of 50 or even 75 basis points, which the experts at Capital Economics do not rule out. But the market prefers to see the surprise acceleration of 0.7% in growth in the region in the second quarter, after 0.5% in the first, and this despite the stagnation of the German economy.

The American consumer under surveillance

Around 2:30 p.m., the Bedroom 40 rose 1.57% to 6,438.86 points after a peak at 6,454.47 (+1.81%), unprecedented since June 9, in a relatively large business volume of 1.87 billion euros. The month of July is currently gaining 8.5%. The contracts future on US indices gain between 0.2% and 0.9%. US First Cap, Apple gained 2.3% in pre-market trading, whileAmazon jumped 10.5%, after publishing quarterly results last night that beat expectations. Exxon Mobil and Chevron earnings are reported up 2.2% and 3.1% respectively after the announcement of record profits boosted by the rise in oil prices.

In the United States, household income increased by 0.6% and spending by 1.1% in June, against respectively 0.5% and 1% expected by the market. The core PCE index of personal consumption expenditure, the measure of inflation most closely followed by the Fed rose by 4.8% over one year, after 4.7% in May. The central bank is also closely watching the 1-year inflation expectations component of the University of Michigan Consumer Confidence Index, which will be released at 4 p.m. Analysts anticipate confirmation of this indicator at 5.2% in final data for July, after 5.3% in June.

A season of good results

Hermes increased by 6.3%. The luxury saddler published excellent first-half results, marked by a sharp rise in profits and a rebound in sales in China in June. In its wake, LVMH earn 2%. L’Oreal takes for its part 3.4% after reporting a 25.2% increase in its net profit from the first half and confirming its objective of an increase in its turnover and its results this year, higher than that of the global beauty market.

Capgemini advance of 7.1%. The SSII has raised its annual revenue growth target at constant exchange rates, after a strong increase in its results in the first half. Results deemed all the more impressive by analysts as expectations were already high.

Renault rises 5.7%. The automaker raised its annual targets, while its half-year results suffered from the crisis of the semiconductors and the exit of its activities in Russia, but proved to be clearly above analysts’ expectations.

BNP Paribas wins 3.6%. The bank published better-than-expected results for the second quarter thanks to lower provisions for bad debts, despite the economic slowdown, and vigorous activity, especially in the markets. Societe Generale and Agricultural credit follow with gains of 4.5% and 2.6% respectively.

vinci appreciates by 3%. The construction and concessions group raised the annual targets for its airport division and confirmed its other prospects while its net profit jumped to 1.9 billion euros in the first half, against 682 million a year earlier.

Excluding the flagship index, Air France-KLM earns 5.5%. The airline is expected to post its first positive full-year operating result since 2019 this year following better-than-expected results in the first half.

GTT gives up 3.4%. The manufacturer of valves for the transport of liquefied natural gas is counting on annual turnover and gross operating surplus at the bottom of the range of its forecasts, due to ” shifts recorded in the first half of the construction schedules for certain vessels “.




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