Cac 40 encouraged by Powell and quality quarterly papers, market news

The Paris Stock Exchange continues to rise, reassured by the prospect of a smaller scale of the next interest rate hike by the US Federal Reserve. However, investors remain wary after being disappointed with Meta Platforms. Parent company Facebook really disappointed by announcing the first quarterly turnover decline in its history. Apple and Amazon will also release their quarterly reports after Wall Street closes.

Around 9:30 am Bedroom 40 added 0.60% to 6,293.96 points with a business volume of 345 million euros.

The Fed, as expected, raised the main key rate by 75 basis points for the second time in a row, returning 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, especially the yen. The euro is hovering around $1.02 after jumping 0.9% overnight.

Schneider Electric and Ipsen in sight

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.

Schneider Electric increased by 4.8%. The electrical equipment maker raised its 2022 operating profit and revenue growth targets after posting strong first-half results.

Saint-Gobain wins 4.2%. The building materials maker posted record operating results and double-digit margins 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.

stellantis rise in price by 3%. The automaker announced new record results: Margins achieved on its electrified Jeep, Fiat and Peugeot vehicles enabled it to thrive in “particularly difficult” conditions.

ArcelorMittal rises by 4.9%. The steel giant certainly posted a net income that dropped slightly to $3.92 billion in the second quarter, but the free cash flow generation and share buying program are being welcomed by analysts confident in the group’s financial discipline.

Kering increases by 3%. The luxury group reported a 12 percent increase in sales from April to June. However, the growth of the flagship brand Gucci is only 4% due to store closures and restrictions in China.

STMicroelectronics earns 2.5%. The semiconductor maker reported better-than-expected second-quarter results and raised expectations for all of 2022 amid strong demand for its products.

Ipsen jumps by 10%. The pharmaceutical company has raised its 2022 targets after releasing robust half-year results.

Vice versa, Airbus flounder by 4.4%. The aircraft manufacturer has lowered its aircraft delivery plan for 2022 and has postponed the production of 65 aircraft per month for the A320 family to early 2024 due to difficulties encountered in its supply chain. Now Airbus expects to deliver about 700 aircraft this year, not 720. The rest of the targets remain.

Accor fell by 5% despite the announcement of a sharp increase in its results in the second quarter. But annual projections are considered ” stupid analysts.

Finally, check fell 9% after posting a net loss of 239 million euros in the first half against a profit of 380 million a year earlier.