The Paris Stock Exchange favored caution on Wednesday pending the final results of the midterm elections in the United States, and new data on US inflation expected on Thursday.
The flagship CAC 40 index fell 0.38% to 6,416.79 points at 10:30 a.m., the day after a small increase of 0.39%.
According to the latest trends in the American mid-term elections, the Democrats would concede to the Republicans only a narrow majority in the House of Representatives, while the suspense persists for the Senate.
From an investor’s point of view, a victory for the Republicans in both chambers is a good outcome for equities. And even a divided government, which we will surely have, is preferable to a democratic victory, recalls Ipek Ozkardeskaya, an analyst at Swissquote Bank.
Be that as it may, market participants expect above all to be reassured about the inflation that central banks are trying to curb by tightening financial conditions.
They will therefore be looking closely at the US consumer price index for October on Thursday to try to predict the next steps in US central bank (Fed) policy. It has been raising its key rates since March to curb economic activity while ensuring that a recession is avoided.
The market is convinced that the Fed will continue to raise its rates in the coming months, but less quickly than it has done so far this year.
Scor widens its losses and strengthens its balance sheet
The reinsurer Scor saw its losses multiplied by 6.5 in the third quarter compared to the same period in 2021, – 270 million, driven mainly by the cost of natural disasters. But Scor has taken decisive steps to limit the risk that the volatility of 2022 will repeat itself in 2023, according to analysts at Jefferies. The action rose 0.54% to 15.92 euros at 10:20 a.m.
Veolia looks up for 2022
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Veolia (-0.79% to 23.72 euros) announced a turnover increase of 15.7% over nine months, driven by all its activities (water, waste, energy), and shows its confidence for the future, aiming for the high end of its annual objectives.
Bonduelle confirms its objectives
The canned and frozen vegetables specialist Bonduelle (+0.17% to 11.70 euros) posted growth in turnover in the first quarter of its delayed 2022-23 financial year, an increase mainly driven by price increases. It is maintaining its annual business growth target of +8% +11% at constant exchange rates and scope.
Rising turnover for Orpea
The group of clinics and private nursing homes Orpea (-0.99% to 8.23 euros) published Tuesday a turnover in the third quarter up 6.4%, driven by its international activities, which compensate for the situation in France, marked by the crisis opened by the publication of the investigative book Les Fossoyeurs.