The Paris Stock Exchange is back in the red in reaction to the stronger than expected rise in producer prices in the United States in September. They increased by 0.4% over one month and 8.5% over one year, against respectively +0.2% and 8.4% anticipated by the market. But the real test is expected tomorrow with consumer prices. The morning was marked by the good quarterly performance of LVMH, as well as some confusion around the end of the Bank of England’s emergency purchase program.
Shortly after 2:30 p.m., the Bedroom 40 lost 0.24% to 5,819.46 points in a business volume of 950 million euros. The contracts future on US indices gain between 0.7% and 1%. Pepsico progressed by 2% in pre-market after the announcement of a quarterly profit and turnover above expectations. The soda giant, which managed to pass on the price increase to its customers, also raised its annual forecast.
The Bank of England signals the end of the game
The Bank of England (BoE) recalled this morning that it ” made it clear from the start that its temporary and targeted purchases of government bonds will end on October 14 “, thus confirming the words of its governor. ” My message to the funds concerned and to all companies is that you have three days to close your positions, Andrew Bailey said on Tuesday at the Institute of International Finance in Washington.
A BoE spokesperson also declined to comment on the report. FinancialTimes that the central bank has privately signaled to several banks that it may extend its emergency bond-buying program beyond the Oct. 14 deadline if volatility spikes again. On the bond market, the yield on the British 30-year bond (gilt) crossed the 5% mark for the first time since the end of September, before returning to around 4.97%.
The Fed will publish, in the evening, the minutes of the meeting of its monetary policy committee of September 20 and 21. ” Hopes for a boost from the Fed minutes may not materialize amid comments that now seem dated and officials seemingly united in their aim to beat inflationwarns Craig Erlam, market analyst at Oanda. Even good consumer price numbers tomorrow are unlikely to be much of a game-changer in the near term. “, he adds.
Luxury shines again, LVMH still confident
LVMH grew by 1.7% and its parent company Christian Dior by 1.8%. The world leader in luxury has shown confidence in the continuation of double-digit growth in sales despite the sharp slowdown in the global economy and inflationary pressures. The group exceeded analysts’ expectations with growth that has not really slowed since the first half.
In its wake, Hermes garners 1.4% and Kering 0.3%.
BNP Paribas, Agricultural credit and Societe Generale fell between 0.8% and 1.7%, still weakened by fears about the economy. In Zürich, Swiss credit down 4%. The establishment is under investigation by the US Department of Justice to determine whether it continued to help some of its US clients hide assets from authorities, Bloomberg reports. Credit Suisse paid $2.6 billion in 2014 to end tax evasion lawsuits.
Icade down 5.6%. Goldman Sachs downgraded the title of the property from “neutral” to “sell” and reduced its price target from 43.40 to 32.50 euros. The broker has also lowered Covivio (-3.9%) from “buy” to “neutral”.
Finally, Vicat fall of 8.6%. The cement manufacturer lowered its outlook for the 2022 financial year due in particular to ” the very sharp rise in electricity costs ” in the third quarter, which had “ a very unfavorable impact on the profitability of the group’s activities in France and Switzerland “. As a result, the 2022 gross operating surplus is now expected to fall compared to 2021 and should be at a level at least equal to that of 2020, Vicat said in a press release.