The Paris Stock Exchange is picking up in the wake of Wall Street’s rebound at the opening. The 11% drop inAmazon is in fact offset by the increase of more than 6% inAppleas well as increases of 2% and 1% respectively inExxon Mobil and Chevron thanks to record quarterly profits for the first and almost historic for the second.
Shortly after 4 p.m., the Bedroom 40 gained 0.23% to 6,258.23 points in a business volume of 2.2 billion euros. The index is currently gaining 8.6% in October, thus signing its first monthly increase since July (+8.9%). In New York, the Dow Jones increased by 1.26% and the Nasdaq Composite by 0.61%.
Amazon’s disappointing forecast for the current quarter, which includes the crucial holiday season, concludes a largely negative period for Gafam. The heavyweights of American technology have indeed not escaped the deterioration of the economic environment, which has only spared the energy sector, benefiting from the rise in oil prices.
Mixed macroeconomic data
Today’s economic indicators are mixed, to say the least. Although growth slowed in France in the third quarter (+0.2% after +0.5%) and recorded a jump in Germany (+0.3% after +0.1%), the inflation rate reached records at respectively 7.1% over one year in October in France and 11.6% across the Rhine, in harmonized data from the European Union. Soaring prices are increasing pressure on the ECB ahead of Monday’s release of the consumer price index for the eurozone as a whole.
On the other hand, the hope of an upcoming peak in inflation in the United States maintains the hope of an inflection in the monetary policy of the Fed from December, after a new hike in rates of 75 basis points , which would be the fourth in a row, in November. The “core” PCE index of personal consumption expenditure, the measure of inflation most closely followed by the Fed, rose to 5.1% over one year in September, after 4.9% in August. Additionally, labor cost growth slowed to 1.2% year on year in the third quarter, from 1.3%. Finally, the University of Michigan’s consumer confidence index rose to 59.9 points in October, its best level since April 30.
Sanofi and Danone lead the Cac 40, Air France falls
Danone gain 3.2%. The agribusiness giant has raised its financial targets for the current year after posting a strong increase in sales in the third quarter, driven by price increases.
Sanofi increased by 3.4%. The pharmaceutical group has revised its net earnings per share (EPS) forecast for its activities in 2022 slightly upwards, after a 9% growth at constant exchange rates in its sales in the third quarter, supported by specialty medicine and vaccines.
Another defensive value, Orange appreciates by 1.5%.
Saffron rises 2% The engine manufacturer raised its sales and free cash flow forecasts for 2022, while its sales for the third quarter increased by 29.9% on an annual basis, carried by a dollar strong.
Excluding CAC 40, Air France-KLM sinks 15%. Despite quarterly results above expectations, analysts are skeptical about the ability of the carrier to achieve objectives they consider too optimistic.
Finally, bic fall of 10.4%. The maker of pens, razors and stationery products reported an adjusted operating margin of 15.7% in the third quarter, against 17.8% a year earlier, reflecting a decline in its profitability.