The Paris Stock Exchange rose slightly, reassured by the solid results of the HSBC bank and the departure of a first shipment of cereals from the Ukrainian port of Odessa, despite the poor figures for manufacturing activity in the eurozone. The PMI index established by S&P Global fell to 49.8 points in July, against 52.1 in June, thus signing its first passage below the threshold of 50 points, synonymous with a contraction in activity, for the first time since June 2020.
However, this deterioration is accompanied by an easing of tensions on the supply chains and ” a sharp easing of inflationary pressures in the manufacturing sector says Chris Williamson, Chief Economist at S&P Global. He notes, however, that gas shortages will further hamper activity levels, the contraction of which is likely to accelerate.
Around 10:15 a.m., the Bedroom 40 gained 0.46% to 6,478.24 points in a business volume of 420 million euros.
An optimistic interpretation
Financial markets reacted positively to stronger-than-expected eurozone GDP growth in the second quarter, as well as to the feeling that the US Federal Reserve might reduce the extent of its next monetary tightening.
This interpretation of the future evolution of the US central bank’s monetary policy is considered optimistic to say the least by economists, especially since Neel Kashkari, the president of the Minneapolis Fed, reaffirmed on Sunday that the main objective of the Federal Reserve is to bring inflation back towards 2%, while his colleague from the Atlanta Fed, Raphael Bostic, declared shortly before that much remains to be done in terms of monetary tightening.
Jonas Goltermann, market economist at Capital Economics, said he was surprised by the market’s “dovish” perception of Fed funds’ latest comments last week. ” In our view, the renewed risk appetite in response to the Fed is largely due to a combination of wishful thinking and strained positionshe explains, adding that, according to U.S, there’s not much to Jerome Powell’s comments to suggest monetary officials will back off aggressive rate hikes as inflation remains well above target “.
Air France-KLM and the banks in sight
The week which begins will be animated by the monetary decisions of the Bank of Australia and the Bank of England, by the OPEC meeting, which should decide on the evolution of its production for the month of September, as well as by the July employment report in the United States.
Company publications will also continue with around 170 S&P 500 companies, including Capterpillar, AMD, Starbucks and Uber, not to mention Europeans BP, Merck, BMW, Infineon, Bayer, Beiersdorf, Lufthansa and Asians Alibaba and Nintendo. In France, five components of the Cac 40 will reveal their quarterly results, namely: Bouygues, Axa, Société Générale, Veolia Environnement and Crédit Agricole.
Air France-KLM rose 5%, boosted by a rating from HSBC, which went from “hold” to “buy” on the title of the air carrier.
BNP Paribas rises by 1.7%, Agricultural credit by 0.8% and Societe Generale 1% after the Chinese-British’s better than expected quarterly results HSBC, which has benefited from the rise in interest rates and has pledged to bring its dividend back to the level before the health crisis as soon as possible. The bank has also raised its profitability forecasts by counting on growth in its income. In London, HSBC advances by 5.8%.
Bollore gains 2.6%. The group published sharply higher results for the first half, supported in particular by the good performance of its transport and logistics activities. Vivendi takes for its part 1.2%
The automotive sector continues to rebound despite the announcement of a 7.1% drop in new car registrations in France last month. Renault earns 3.2%, Stellantis 2.4% and Faurecia 1.6%.
vinci yields 07%. Grupo Aeroportuario del Centro Norte (OMA), announced that it had received a letter from the investment fund Fintech Advisory regarding the indirect sale of 29.9% of the capital of the Mexican airport group to a subsidiary of Vinci Airports for a total amount of 815, 4 million dollars (797.3 million euros).