After five sessions of decline in a row, the Paris Stock Exchange is recovering, mainly supported by the luxury sector, which benefits from the quarterly performance of LVMH. An introduction deemed reassuring at the very start of the earnings season, which will continue with American banks at the end of the week. Investors are limiting initiatives to a few hours before the publication of the producer price index in the United States, a prelude to that of consumer prices tomorrow.
Mid-session, the Bedroom 40 gained 0.58% to 5,867.28 points in a business volume of 680 million euros. The contracts future on US indices gain between 0.6% and 0.9%.
A spokesperson for the Bank of England confirmed with Bloomberg that the emergency bond-buying program will end on Friday, in line with the words of its governor. ” My message to the funds involved and all companies is that you have three days left to close your positions, Andrew Bailey said on Tuesday at the Institute of International Finance in Washington.
The US PPI ahead of inflation
The spokesperson also declined to comment on the article by FinancialTimes that the Bank of England has privately indicated to several banks that it may extend its emergency bond buying program beyond the October 14 deadline. On the bond market, the yield on the British 10-year bond (gilt) tightened by 10 basis points to 4.54%, in view of its recent highs.
The producer price index for September in the United States will be the main meeting of the day, before the publication, in the evening, of the “minutes” of the last meeting of the Fed’s monetary policy committee. ” Hopes for a boost from the Fed minutes may not materialize amid comments that now seem dated and officials seemingly united in their aim to beat inflationwarns Craig Erlam, market analyst at Oanda. Even good consumer price numbers tomorrow are unlikely to be much of a game-changer in the near term. “, he adds.
Luxury shines again, LVMH still confident
LVMH grew by 2.6% and its parent company Christian Dior by 2.4%. The world leader in luxury has shown confidence in the continuation of double-digit growth in sales despite the sharp slowdown in the global economy and inflationary pressures. The group exceeded analysts’ expectations with growth that has not really slowed since the first half.
In its wake, Hermes garners 2.8% and Kering 0.6%.
BNP Paribas, Agricultural credit and Societe Generale lose around 1%, still weakened by fears about the economy. In Zürich, Swiss credit down 3.5%. The establishment is under investigation by the US Department of Justice to determine whether it continued to help some of its US clients hide assets from authorities, Bloomberg reports. Credit Suisse paid $2.6 billion in 2014 to end tax evasion lawsuits.
Icade down 5.2%. Goldman Sachs downgraded the title of the property from “neutral” to “sell” and reduced its price target from 43.40 to 32.50 euros. The broker has also lowered Covivio (-3.2%) from “buy” to “neutral”.
Finally, Vicat fall of almost 7%. The cement manufacturer lowered its outlook for the 2022 financial year due in particular to ” the very sharp rise in electricity costs ” in the third quarter, which had “ a very unfavorable impact on the profitability of the group’s activities in France and Switzerland “. As a result, the 2022 gross operating surplus is now expected to fall compared to 2021 and should be at a level at least equal to that of 2020, Vicat said in a press release.