Volatility remains the key word on the Paris Stock Exchange, the Cac 40 evolving within a margin of a hundred points, between the reopening of the Nord Stream 1 gas pipeline, the political risk in Italy after the resignation of Mario Draghi and the rise in higher than expected rate decided by the ECB.
Shortly after 4 p.m., the Bedroom 40 is stable at 6,188.95 points (+0.07%) in a business volume of 1.75 billion euros. In Milan, the FTSE Eb fell by 1.39%, while the FTSE index of Italian banks fell by 3.4%. On Wall Street, the Dow Jones loses 0.76% and the Nasdaq Composite 0.26%.
The European Central Bank surprised by raising its key rates by 50 basis points, the refi rate thus going from 0% to 0.5%, a first since 2011, and not by 25 points as expected by the market. The ECB has also approved an anti-fragmentation mechanism, the Transmission Protection Instrument (TPI) intended to preserve the most fragile economies in the euro zone. It was decided unanimously, explained Christine Lagarde during her press conference, adding that all member countries of the euro zone will be ” in principle eligible to this program.
It all depends on the stats
The normalization of monetary policy will continue, in the face of inflation which should remain high, and the ECB stands ready to adjust all its tools, she indicated. But the next decisions will be conditional on the evolution of economic indicators, thus avoiding sending a message ” ex ante “. Questioned about her press conference on June 9, during which she had indicated that the ECB would raise its rates by 25 basis points in July, Christine Lagarde specified that she had taken the precaution of indicating that it was an intention.
In the bond market, Italy’s 10-year BTP yield hit an over-month high of 3.6389% following the resignation of Mario Draghi, which paves the way for early parliamentary elections in September. or October. The spread with the German Bund of the same maturity touched 245 basis points, up 11%. On the foreign exchange market, the euro is trading at 1.0211 dollars after a peak at 1.0279.
Publicis at the head of the Cac 40, Valneva sanctioned
Publicis increased by 3.9%. The ad agency raised its overall outlook for 2022 after posting record results and beating analysts’ forecasts in the first half of the year.
Thales is stable. The defense electronics group has nevertheless raised its annual forecast for order intake and revenue growth due to robust activity in all its segments during the first six months of the year. If she welcomes the solidity of the half-year performance, Chloe Lemarie of Jefferies points out that the increase in the forecasts is more “ limited than expected “.
Seb 10.2% drop. The manufacturer of small household appliances is aiming for a turnover ” globally stable “and an operating margin on activity of between 8% and 8.5% in 2022. The group established these projections when its results fell in the first half and that it does not anticipate ” significant improvement in the economy by the end of the year in mature countries “.
TotalEnergies lost 2.9% in the wake of oil prices as crude inventories rose by 3.5 million barrels in the United States last week, according to figures from the American Petroleum Institute (API).
Sartorius Stedim Biotech advance of 9.7%. Its parent company Sartorius reported a jump in profits in the first half and confirmed its annual targets.
Finally, Valneva gives up 6.7%. The European Commission’s order for only 1.25 million doses of its Covid-19 vaccine, against the 24.3 million planned, disappointed the market.