The Paris Stock Exchange is expected to be stable, even slightly up, as we approach the first major straight line in the quarterly results season. In Paris, Air Liquide, Michelin, Vinci and Worldline unveil their turnover and Orange its quarterly results. Wall Street continued its rebound on Monday with a gain of around 1%, helped by the easing observed in the bond market.
In New York, the S&P 500 rose 1.2% and the Nasdaq Composite 0.9% last night. Private sector activity in the United States contracted for the fourth consecutive month in October, according to the S&P Global PMI indices, suggesting that the Federal Reserve’s monetary tightening policy is beginning to bear fruit. These clues are Good news for investors anticipating a pause from the Fed early next year explains Edward Moya, senior market analyst at Oanda.
Fed, towards a slowdown in December?
The market continues to expect a 75 basis point hike in the Fed funds rate on November 2, but expectations for a move of the same magnitude in December tend to diminish. The European Central Bank is also expected to raise rates by 75 basis points on Thursday, despite PMI indices pointing to a recession in the euro zone. On the bond market, the yield on the American 10-year loan is around 4.2%. A similar movement was observed yesterday in Europe.
The forthcoming appointment of Rishi Sunak as British Prime Minister also contributed to this easing on rates, even if the pound sterling did not really benefit from it.
About 20% of S&P 500 companies released their quarterly results and more than half of them beat expectations. The Gafam enter the running this week. Alphabet and Microsoft will take part in the exercise tonight, before Meta tomorrow, then Amazon and Apple on Thursday.
On the macroeconomic level, the Ifo index of the business climate in Germany in October will hold a place of choice this morning, ahead of that of the Conference Board measuring consumer confidence in the United States. Both stats are expected to decline.
Confirmations, raising and lowering
Liquid air confirmed its outlook for 2022, after seeing its sales increase by 41.3% in the third quarter, thanks in particular to the rise in energy prices.
Worldline confirmed its annual objectives after seeing its turnover increase by 10% in organic data in the third quarter.
Orange confirmed all of its financial targets for 2022, after the telecommunications operator performed broadly in line with analysts’ expectations in the third quarter.
Remy Cointreau says it looks to 2022/23 with confidence after a 16.2% rise in sales in the second quarter, driven by a recovery in demand for its premium cognac in China.
Interparfums raised its financial targets for 2022, after a rise in sales in the third quarter.
Plastic Omnium confirmed its financial targets for 2022, as its activity rebounded strongly in the third quarter, beating analysts’ estimates.
Seb has lowered its revenue and operating margin forecasts for the current financial year after suffering in the third quarter from a sharp decline in sales in its main markets in Europe.