Cac 40 catches its breath after recent ‘sale’, Atos continues its decline, market news

The Paris Bourse edged up a few points on Tuesday morning after falling 8% in five days. Rebound in contracts future on US indices gives hope for the beginning of stabilization the next day after the departure of the S & P 500 in a bear market. The broader index, which closed 3.9% on Monday, was indeed down more than 20% from its January high, marking its lowest reading in a year.

Just before 10 o’clock in the morning Bedroom 40 remains stable at 6,025.79 points (+0.06%) with a business volume of 425 million euros.

Mainstream sentiment remains negative, clouded by expectations of a substantial hike in the Fed’s funds rate by the Federal Reserve, which is starting a two-day meeting of its monetary policy committee on Tuesday. The probability of tomorrow’s 75 basis points increase was estimated by the market at about 5% on Friday, before the statistics on inflation shook things up. At the opening on Monday, it was estimated at 50%, and on Tuesday – about 95%.

Curve reversal continues

These expectations are confirmed by an article in the journal wall street magazine assuming a rise in power is expected as a result of a new spike in inflation to 8.6% within one year, the highest level since the end of 1981. A rise of 75 basis points would certainly be surprising as the Fed makes it a point of honor to properly manage expectations in terms of monetary policy, but a gesture of this magnitude is widely accepted.

The yield curve inversion continues, with 5-year US bonds yielding 3.3942% this morning vs. 3.3059% for 30-year bonds, reflecting fears of a recession in the US economy. The curve between 2-year and 10-year also reversed yesterday for the first time since April.

In the Old Continent, consumer price growth was confirmed at 1.1% m/m in Germany in May and 8.7% y/y in harmonized data from the European Union. In the late morning, the market will follow the ZEW Rhine Economic Sentiment Index for June. Inflation will be back on the table in the United States this afternoon with last month’s Producer Price Index. The statistics, which will be published at 14:30, should show a slowdown compared to April.

Atos splits in two, CEO leaves

Banks heavily attacked in recent days are recovering. BNP Paribas increase 1.8%, Agricultural loan 1.1% and Societe Generale 2.5%.

Brent oil price recovery supports Total Energywhich grew by 1.2%.

ipsos advance payment 2.9%. The pollster forecasts organic growth of 5% to 7% per annum between 2023 and 2025 and €3 billion in revenue by 2025, including acquisitions.

Athos falls another 18.2%. The digital services group announced on Tuesday that it intends to split into two separate companies. This strategic decision will result in the departure of CEO Rodolphe Belmer by the end of September. Atos also announced the sale of its entire stake in the payments specialist. world line, or 2.5% of capital for approximately EUR 225 million (EUR 33.41 per share). The latter lost 4.8%.

Air France-KLM a fall of 11.4%. To return to its all-time low, the airline said it had completed a €2.25 billion capital increase, a move that sees global logistics specialist CMA CGM own 9% of the air transport group’s capital. .

Michelin gives 0.6%. JPMorgan downgraded the tire maker’s rating from “neutral” to “undervalued” and lowered its target price from 140 euros to 110 euros. Among other analyst ratings, HSBC moved from Buy to Hold. fast, which fell by 0.7%.