Cac 40 calmed by less hawkish Powell, room for quarterly results, morning meeting

The prospect of a smaller scale next rate hike by the US Federal Reserve spurred US markets, and in particular the Nasdaq Composite (+4%), pulling Asian markets with it. European markets should follow with some caution. Meta Platforms, the parent company of Facebook, really disappointed by announcing the first quarterly turnover decline in its history. Contracts future US indices are also losing ground this morning. Apple and Amazon will release their quarterly reports after Wall Street closes.

The Fed, as expected, raised the main key rate for the second time in a row by 75 basis points, bringing it to the range of 2.25% -2.5%. Its president, Jerome Powell, showed determination to fight inflation during his press conference in an attempt to assuage expectations of the next monetary tightening. In particular, he pointed out that ” at some point it would be appropriate to slow down “.

Growth of megarates behind?

Michael Pierce, Senior Economist at Capital Markets, notes that with ” slowing inflation and the accumulation of signs of economic weakness, we suspect that the perpetrators [de la Fed] will be more cautious about the next rate hike, returning to a more limited 50 basis point tightening in September “.

Same story with JPMorgan analysts who believe that central banks should continue their cycle of monetary tightening this year, but it looks like “ it is increasingly likely that the high point of the pace of rate hikes is already behind “.

Jerome Powell also signaled that the next decisions would be made at each meeting, suggesting that a less rigorous approach would depend on economic performance. In the bond market, the yield on 10-year US bonds stabilized at 2.78%, while in the foreign exchange market, the dollar fell against other currencies, in particular, against the yen. The euro is hovering around $1.02 after jumping 0.9% overnight.

Cascade elevators

Investors’ attention is now focused on the first estimate of US GDP in the second quarter. The consensus formed by Bloomberg suggests a 0.5% year-on-year growth after contracting 1.6% for the first time. In addition, early in the day will be published the first data on the dynamics of consumer prices in Germany in July.

Total Energy announced a new share buyback program after it recorded a jump in its results in the second quarter of 2022, once again caused by a sharp increase in hydrocarbon prices amid the war in Ukraine.

Sanofi raised its earnings forecast for the full year as sales of its star drug Dupixent continued to grow strongly.

Saffron raised its cash and revenue targets for 2022 after seeing a boost in results in the first half of the year thanks to the resumption of air traffic.

Schneider Electric raised its operating profit and revenue growth targets for 2022 after posting strong first-half results.

liquid air confirmed its forecast for 2022, seeing improved results in the first half of the year, largely due to higher energy prices.

stellantis announced new record results, profits made on its Jeep, Fiat and Peugeot electric vehicles enabled it to succeed in the context of ” especially difficult “.

Orange confirmed that it is aiming to increase recalculated adjusted gross operating income (Ebitdaal) from 2.5% to 3% compared to the same period in 2022, while this figure increased modestly in the first half of the year.

STMicroelectronics posted stronger-than-expected results in the second quarter and raised its forecast for 2022 amid strong demand for its products.

Airbus lowered its aircraft delivery plan for 2022 and postponed a production plan of 65 aircraft per month for the A320 family to early 2024 due to supply chain difficulties. Now Airbus expects to deliver about 700 aircraft this year, not 720. The rest of the targets remain.

teleplay recorded in the second quarter a turnover close to 2 billion euros, up 4.5% compared to the same indicator. With the sharp decline in the contribution of Covid aid contracts, organic growth reached 14.5%, accelerating QoQ (+11.1%). Annual forecasts are confirmed.

In the house Keringsales rose 12% on a comparable basis between April and June, but Gucci’s flagship brand grew just 4% due to closures and restrictions in China.

crossroads confident in the second half after increasing current operating income by 1.6% during the first six months of the year and raising the cost reduction target for 2022 in the context of accelerating inflation. The performance recorded in Brazil, the distributor’s second market, provided strong support.

Saint-Gobain posted a record operating result and double-digit margin at the end of June. At 11%, it rose by 0.3 points over the year. The building materials maker also reiterated its guidance for the full year, i.e. an increase at comparable exchange rates in its operating profit compared to 2021.

Casino announced that it has reached an agreement to sell a majority stake in its GreenYellow subsidiary to private equity firm Ardian for €1.4 billion.

Alice raised several of its financial goals for fiscal year 2022 in the context of “ the recovery of activity is better than expected in the first half of the year, and [de] good price momentum “, the company said on Wednesday.