The Paris Stock Exchange rebounded on Thursday after two sessions of decline in a row. The Cac 40 gained 1.27%, to 6,500.44 points, in a very low trading volume of 2.6 billion euros, British investors being on leave for the jubilee of Queen Elizabeth II.
The flagship Parisian index, well helped by the gain of nearly 5% in Saint Gobain, withstood the decline on Wall Street. The Dow Jones notably lost 0.2% after the earnings warning issued by Microsoft, which lost 2.5%. The software giant has warned that its accounts for the current quarter will be lower than analysts’ expectations, penalized by the rise in the dollar. Gafam’s “M” now expects revenues of between 51.94 and 52.74 billion dollars, against 52.4 to 53.2 billion previously. The profit forecast is reduced to 2.24 to 2.32 dollars per share, against 2.28 to 2.35 dollars previously.
Oil prices return to equilibrium, at more than 116 dollars a barrel, after falling following information from the FinancialTimes that Saudi Arabia could raise its production to compensate for a possible inability of Russia to increase its pumping due to Western sanctions. OPEC+ oil ministers, who met today by videoconference, decided to raise production by almost 50% to 648,000 barrels per day in July and August, against 432,000 in the previous month, according to reports. sources quoted by the Bloomberg and Reuters agencies. Sources within the cartel told Reuters that the organization was trying to make up for the drop in Russian oil production, which fell by around a million barrels a day following Western sanctions against Moscow.
Jamie Dimon expects an economic ‘hurricane’
On the macroeconomic front, the American private sector created 128,000 jobs in May, the lowest figure since April 2020, at the height of the pandemic pandemic, according to the ADP Employer Services survey, against 300,000 anticipated by the consensus formed by Bloomberg. Jobless claims, on the other hand, fell from 11,000 to 200,000 last week, against an estimated 210,000.
The yield on the US 10-year bond is trending slightly to 2.92% after suffering a strong sell-off the day before. On Wednesday, JPMorgan Chase boss Jamie Dimon advised investors to prepare for a ” hurricane “ economy and warned that the war in Ukraine should keep pressure on raw materials. He also warned of the risk of renewed market volatility as the Federal Reserve began the process of reducing the size of its balance sheet by letting the bonds it holds mature without replacing them.
Saint-Gobain confirms
Biggest increase in the Cac 40, Saint Gobain confirmed that it expects record operating income and a double-digit margin for the first half of its 2022 fiscal year. Over the first six months of the year, “the group expects the operating result to exceed the record level of the first half of 2021 and the operating margin to reach a double-digit level”he said in a statement.
On the SRD, Remy Cointreau gained 4.9%, supported by annual results qualified as “ reassuring by Morgan Stanley. The spirits group was again confident about the financial year which will end at the end of March 2023, after achieving “record” results during the 2021-2022 financial year. He always foresees a strong start to its activity in the first quarter despite a very high basis of comparison and a context marked by the pandemic in China “. In its wake, Pernod Ricard climbed 2%.