The Paris Stock Exchange is picking up, helped by Wall Street, after two sessions of decline in a row. Fears of heightened tensions between Beijing and Washington eased somewhat as Nancy Pelosi left Taiwan on Wednesday. However, many challenges remain, including the risk that central banks’ response to inflation will affect the global economy. Several Fed officials have also been more “hawkish” than expected on the subject of soaring prices.
Business publications are generally in good shape despite some disappointments, while activity in the services sector in the United States, which accounts for more than two-thirds of jobs, recorded a surprise acceleration to 56.7 points, according to data published by the Institute for Supply Management (ISM), after 55.3 in June. On the other hand, it contracted in the euro zone under the impact of a reduction in consumer spending, faced with rising prices.
Shortly after 4 p.m., the Bedroom 40 rebounded 0.81% to 6,462.01 points in a business volume of 1.3 billion euros. In New York, the Dow Jones gains 0.76% and the Nasdaq Composite 1.76% . The latter is boosted by the 13% increase in PayPal, which raised its annual forecast and announced that Elliott Management had a $2 billion stake in the “fintech”. on their side, Apple and Amazon gain 2.7% and 3% respectively.
The Fed “far from having finished with inflation”
St. Louis Fed Chairman James Bullard said he was determined to raise interest rates to bring inflation back toward the 2% target. ” We’ll be firm and make it happen “, he declared this Wednesday on CNBC.
The day before, Mary Daly, head of the San Francisco branch, had warned that the Federal Reserve is “far from being finished with the fight against inflation, while his colleague from Cleveland, Loretta Mester, waits for proof ” truly convincing » that the rise in prices is heading towards moderation on a monthly basis. Same story with Charles Evans (Chicago), for whom a 50 basis point hike in September would be appropriate if inflation shows signs of improvement, while suggesting that, if not, a 75 basis point tightening percentage could also be ” OK “.
The comments come as the market had hoped for moderation from the Federal Reserve after Jerome Powell hinted last week that it might be appropriate, when the time comes, to scale back the magnitude of upcoming rate hikes. ” The Fed’s communication is ambiguous, and it is far too early for [les banques centrales] backtrack commented Emmanuel Cau, head of European equity strategy at Barclays.
Pelosi continues her Asian tour
The Speaker of the US House of Representatives sparked China’s ire by traveling to Taiwan on Tuesday to meet with the island’s top leaders. Beijing responded by announcing military drills including missile launches until Aug. 7 and urging airlines to avoid areas around Taiwan.
China has also announced the cessation of exports of natural sand to Taiwan, a key component in the manufacture of semiconductors, while an embargo on imports of many food products from the island has been decreed. After leaving Taiwan, Nancy Pelosi is continuing her Asian tour via South Korea, before heading to Japan on Saturday.
Delegates from OPEC+ (which includes cartel members and other oil-producing nations, including Russia) have agreed to a 100,000 barrel-per-day production hike starting in September, OPEC says on his website. A snub for Joe Biden, who recently put pressure on Saudi Arabia. This increase marks a marked slowdown compared to the increase of 648,000 barrels per day decided for the months of July and August. The reaction was immediate, the barrel of Brent from the North Sea returning to the 100 dollar mark after having lost more than 1% this morning. TotalEnergies benefited from it with a gain of more than 2%, thus contributing to the progression of the Cac 40.
Axa, Societe Generale and Bic are doing better than expected
Axa advance of 5.7%. The insurer published a net profit higher than analysts’ forecasts for the first half and announced the launch of a new share buyback program for a maximum amount of 1 billion euros.
Company General increased by 3.1%. The bank reported a lower-than-expected loss in the second quarter, as the dynamism of its activities in both retail banking and the markets offset the impact of the sale of its Russian subsidiary Rosbank.
Veolia yields 1.7%. The water and waste treatment giant announced a 22% drop in net profit to 236 million euros in the first half, mainly due to the takeover of Suez and a depreciation of its activities in Russia. The group nevertheless reported strong progress in the second quarter, citing the “successful” launch of the integration of Suez and confirming its objectives.
The automobile sector is weighed down by the lowering by BMW of its production forecast, which also warned of the deterioration of the economy. The title fell by 6.3% in Frankfurt. In Paris, Renault loses 1.5%.
bic appreciated by 5.8%. The maker of pens, lighters, razors and promotional items has raised its forecast for revenue growth in 2022, after posting double-digit sales growth in the first half year on year.