The Paris Stock Exchange is struggling to extend its rebound, torn between a good start to the quarterly results season and inflationary pressures still strong in Europe, which bring the prospect of a recession closer. Wall Street is hesitant in the first exchanges, with the Fed’s Beige Book in sight, expected in the evening.
Around 4 p.m., the Bedroom 40 lost 0.24% to 6,052.60 points after a peak at 6,109.97 (+0.70%) in a starving business volume of 850 million euros. In New York, the Dow Jones plaice by 0.13% and the Nasdaq Composite of 0.63% after two sessions of consecutive increases.
netflix grew 12.3%, boosted by last night’s announcement of quarterly profit and revenue above expectations, as well as twice as strong growth as expected in the number of its subscribers . Procter & Gamble, whose price increase compensated for the drop in sales volumes, gained 2.9%. But the maker of Tide laundry detergent and Pampers nappies is expecting a stronger-than-expected impact from currencies and inflation on its annual accounts, now expected at the lower end of its forecast range. You’re here will publish its quarterly accounts after closing.
Also in the United States, housing starts fell by 8.1% to 1.44 million units at an annualized rate in September, while the number of building permits issued increased by 1.4% to 1.56 million, against respectively 1.46 million and 1.53 million expected by the market. These figures are a new illustration of the impact of soaring mortgage rates, the strongest in 20 years, on demand.
Eurozone very close to double-digit inflation
On the Old Continent, consumer prices rose by 9.9% over one year in the euro zone last month, slightly less than the 10% announced in the first estimate, but the acceleration is very real after the 9 .1% of August. The final figures confirm that price pressures are very strong and widespread. While headline inflation may come down next year along with energy and food prices, the core rate is likely to remain uncomfortably high for the next couple of years. warns Jack Allen-Reynolds of Capital Economics. And to add that the ‘core’ inflation rate ” expected to stay above 2% for some time, which will keep the pressure on the ECB to hike rates aggressively, even if the economy falls into recession “. The Governing Council of the ECB will announce its monetary decision next Thursday.
In the UK, the inflation rate reached 10.1% last month, returning to its July highs, inflated by soaring food prices. The market is swinging between 75 and 100 basis point rate hikes from the Bank of England on November 3rd. The latter has also announced that it will start the 1er November the process of selling bonds acquired under its asset purchase program. Initially, long maturities will not be affected by these disposals.
On the bond market, the yields of European and American 10-year bonds are tending again, while the pound sterling fell by 0.5% to 1.1265 dollars. The Fed is due to publish its Beige Book at 8 p.m. It should provide an overview of the evolution of the economy over the past few weeks, which will serve as a working basis for the monetary policy committee for its meeting in early November.
Sartotius Stedim Biotech dives
Publicis increased by 2%. Citi raised its target price on the title of the advertising group from 90 to 95 euros. Among other analyst ratings, Morgan Stanley went from “underweight” to “overweight” on Veolia Environment, which gains 1.7%. Excluding CAC 40, Air France-KLM wins 4.4%, supported by Kepler Cheuvreux, moved from “keep” to “purchase” on the air carrier.
Conversely, Sartorius Stedim Biotech drop of 15.6%. The supplier of products and equipment for the pharmaceutical industry experienced a major slowdown in the third quarter, due in particular to lower demand in the field of Covid. The annual growth objectives are revised downwards, even if those related to margins are maintained.
Virbac loses 7.9% The veterinary laboratory has refined its turnover growth objectives in the range of 16% to 19% but slightly lowered its operating margin forecasts, now expected between 14% and 15%, against “ neighboring » 15% previously.
Note also the 14% surge inOrpea after a 43% jump since Monday. Several short sellers, including BlackRock, have reduced their short positions on the title of the Ehpad group, according to Bloomberg. The action has fallen more than 83% since the start of the year. Korian rises for its part of more than 2.6%.