The Paris Stock Exchange completely erased its rebound from the day before, tensions on the interest rate markets reflecting fears of a lasting offensive action by central banks to control inflation. In this context, the resilience of companies is put to the test, investors sanctioning those whose accounts are only in line with expectations.
Mid-session, the Bedroom 40 fell 1.72% to 5,982.02 points in a volume of 920 million euros. The contracts future on US indices fell between 0.4% for the Dow Jones and 0.9% for Nasdaq 100. Snap plunged 27% in pre-market after the announcement of a new widening of its losses which again put the sector of social networks under pressure against a backdrop of falling advertising revenues.
On the bond market, the yield on the 10-year US bond came close to 4.29%, its highest level since June 2008. Unveiled on Thursday, the figures for weekly jobless claims in the United States fell to their lowest three-week low, reflecting continued tightness in the labor market, which is a problem for the Fed. The warning was not long in coming, Patrick Harker, the president of the Philadelphia Fed declared that the central bank should raise its rates ” well beyond by 4% to keep them at restrictive levels for a while to fight inflation.
” It’s the U.S. bond market that really leads the major markets, and while liquidity is an issue, the fact is that there are simply no buyers. summarizes Chris Weston, Head of Research at Pepperstone.
L’Oréal and Kering sanctioned
On the foreign exchange market, the pound sterling lost 0.9% to 1.1134 dollars after briefly jumping on Thursday on the announcement of the resignation of British Prime Minister Liz Truss. During the 45 days of his stay at 10 Downing Street, the British currency lost up to 8% against the euro and more than 10% against the dollar. The Conservative Party has given itself a week to find a successor among three candidates. The latter will have to obtain the support of 100 deputies in order to be able to compete. The first ballot is scheduled for Monday afternoon. If former Chancellor of the Exchequer Rishi Sunak and Penny Mordaunt are expected to run, no candidate has yet officially declared themselves.
L’Oreal loose 4.5%. The cosmetics giant reported solid revenue growth in the third quarter. But the brand’s customers seem to be focusing on consumer products, which marks a turnaround while the high-end pole (Lancome Paris, Ralf Lauren), the group’s traditional engine and more profitable, is notably penalized by the confinements. in China.
Kering fell 4.4% The luxury group announced a higher-than-expected increase in turnover in the third quarter thanks to the dynamism of its activity in Europe, but the growth in sales of its strong brand Gucci was less important than ‘expected. Moreover, the group’s sales growth is lagging behind that of its competitors.
Vivendi also gives up more than 4%. The media and communication group announced a 0.6% growth in its turnover in the third quarter at constant exchange rates and scope, thanks to the growth of Havas, its advertising subsidiary, but Canal + fell.
Renault loses 2.3%. The manufacturer confirmed its objectives for 2022, while its turnover increased by around 20% in the third quarter, benefiting from a record price effect. The stock had risen 5% this week. Investors are also awaiting the group’s new outlook, which will be unveiled on 8 November.
EssilorLuxottica down 3.9%. The ophthalmic optics giant has however reiterated its long-term outlook, after the increase in its turnover in the third quarter. If the sales are higher than expected, Bernstein underlines that they are contrasted according to the areas, with a weak progression in North America.
Finally, Voltalia earn 2%. Oddo BHF raised its recommendation on the stock from “neutral” to “outperforming”.