Brilliant luxury performance, Cac 40 scores 6400, Market News

The Paris Stock Exchange continues to gain momentum in this session, again inspired by business publications and news about the economy. The luxury sector is in the spotlight following Hermès and L’Oréal’s quarterly results, which follow those of LVMH and Kering. Across the Atlantic, Apple and Amazon also released better-than-expected quarterly results, allowing the two games to progress in aftersales deals in New York. What Contracts Support future on US indices, and in particular on the Nasdaq 100, rose by 1.5%.

Around 9:45 am Bedroom 40 rose by 1.34% to 6,424.16 points after a peak of 6,554.47, unprecedented since June 9, on a business volume of 625 million euros.

Way out of mega-money puffs?

Markets remain under the impression that the US Federal Reserve will roll back its interest rate hike. The 0.9% contraction in the US economy in the second quarter, which follows 1.6% in the first quarter, does reinforce the feeling of slowing inflation, which allows the Fed to act less aggressively.

Investors reassured there is no longer any need to fear an aggressive monetary tightening cycle that could push the economy into recession as it is already in a technical recession (certainly not to be confused with a real recession) and the threat to the economy is already so the Fed can take a less stringent approach notes Craig Erlam, market analyst at Oanda.

Inflation in Europe and the USA

Financial markets are on track to complete their second week of growth in a row. The grain of sand that could dampen the recent resurgence of optimism is the risk of persistently high inflation. In France, consumer price growth accelerated to 6.8% in July after 6.5% on harmonized data for the euro area. GDP, on the other hand, rebounded 0.5% in the second quarter after contracting 0.2% in the first. Further, the first data on July inflation and Eurozone GDP in the second quarter.

In the United States, the market will keep an eye on household income and spending, but most notably on the main PCE personal consumption expenditure index, the inflation measure most closely followed by the Fed. The central bank is also closely monitoring the annual inflation component of the University of Michigan Consumer Confidence Index, due at 4:00 pm. Analysts expect this indicator to be confirmed at 5.2% in the final data for July after 5.3% in June.

Season of good results

Hermes occupies 7.1%. The luxury saddlery maker posted strong first-half results, marked by a sharp rise in profits and a rebound in sales in China in June. Following in his footsteps LVMX receives 1.3%. Loreal accepts for its part 4.5% after reporting a 25.2% increase in net profit in the first half of the year and confirming its goal of increasing its turnover and results this year, higher than those of the global beauty market.

Capgemini advance payment 6.8%. SSII raised its full-year revenue growth target at constant exchange rates after a significant improvement in first-half results.

Renault rises by 6.9%. The automaker raised its full-year targets as its half-year results were hit by the semiconductor crisis and the scaling down of its operations in Russia, but were well above analysts’ expectations.

BNP Paribas increased by 3.24%. The bank posted better-than-expected results for the second quarter, supported by a reduction in bad debt provisions despite the slowdown in economic growth and strong activity, especially in the markets.

Big gives 0.8%. The electrical infrastructure specialist raised his 2022 targets after recording solid sales growth in the first half of the year. For the current year, FX-free sales growth is expected to be between 9% and 12%, while previously he expected an increase of 5% to 11%. Organic growth should be between 6% and 9% and will be complemented by economies of scale of about 3%.

Vinci rose by 2.6%. The Construction and Concessions Group raised its airports division’s annual targets and reaffirmed other prospects, with net income jumping to €1.9 billion in the first half from €682 million a year earlier.

EssilorLuxottica gives 0.2%. The ophthalmic optics giant posted better results in the first half of 2022, but activity is still slowing down in the second quarter amid worsening macroeconomic conditions.

Angie rose by 1.1%. The energy company released sharply better results for the first half of 2022, marked by very high energy prices amid the war in Ukraine, and indicated that it had significantly reduced its dependence on Russian gas.