Cac 40 helped the banking sector, despite the reduction in activity in the eurozone, Market news

The Paris Stock Exchange starts August with limited profits, good results from HSBC bank and the shipment of the first batch of Ukrainian grains from the port of Odessa help to mitigate the deterioration in manufacturing activity in the eurozone. The PMI index set by S&P Global fell to 49.8 in final data for July from 52.1 in June, marking the first break below the 50-point threshold, synonymous with contraction in activity, since June 2020.

However, this worsening, reflecting increased risks of a recession, is accompanied by an easing of supply chain tensions and ” a sharp easing of inflationary pressures in the manufacturing sector but not in the energy sector, says Chris Williamson, chief economist at S&P Global. He also notes that the shortage of gas will further reduce the level of activity, the decline of which is likely to accelerate.

mid session, Bedroom 40 added 0.40% to 6,474.04 points with a business volume of 620 million euros. In other European countries Dax The Frankfurt Stock Exchange holds 0.35% and FTSE Eb Milanese 1.33%. Contracts future on American indices, the yield is from 0.1% to 0.2%.

The Fed is not as dovish as it seems

In July, global financial markets posted their best monthly performance since 2020, supported by generally favorable corporate publications and a sense that the US Federal Reserve may ease the extent of its next monetary tightening.

This interpretation of the future evolution of US central bank monetary policy is seen by economists as optimistic, to say the least, especially after Neil Kashkari, president of the Minneapolis Fed, confirmed on Sunday that the Federal Reserve’s main goal is to cause inflation. returned to 2%, while his Atlanta Fed colleague Rafael Bostic said shortly before that there was much more to be done in terms of tightening monetary policy.

BNY Mellon also advises against betting on a more dovish Fed shift on interest rates. ” We believe that the press conference [de Jerome Powell] actually contained some elements “hawkish”, including 78 different allusions to inflation in a 26-page transcript. It seems clear to us that the Fed is far from concluding that inflation is back under control and that further increases will be needed, even at the cost of a mild recession and/or weakening labor market. writes John Velis, American Forex and Macro Strategist at BNY Mellon.

In the bond market, US 10-year yields fell 3 basis points to 2.67%, while Italian BTP yields with the same maturity leveled off at around 3.01% after falling below the 3% threshold for the first time since May. .

Air France-KLM and banks in sight

The starting week will be revitalized by the monetary decisions of the Bank of Australia and the Bank of England, the OPEC meeting, which is to decide on the evolution of its production in September, as well as the employment report for July. In the United States.

Company listings will also continue with some 170 S&P 500 companies including Capterpillar, AMD, Starbucks and Uber, not to mention Europe’s BP, Merck, BMW, Infineon, Bayer, Beiersdorf, Lufthansa and Asia’s Alibaba and Nintendo. In France, the five components of Cac 40 will present their quarterly results, namely: Bouygues, Axa, Société Générale, Veolia Environnement and Crédit Agricole.

Air France-KLM rose 5.1% on the back of HSBC’s rating upgrade from Hold to Buy on the carrier’s name.

BNP Paribas increases by 1.5%, Agricultural loan by 0.4% and Societe Generale 1% after better-than-expected Sino-UK quarterly results HSBC, which has benefited from higher interest rates and has pledged to return its dividend to pre-health crisis levels as soon as possible. The bank also raised its profitability forecast, counting on the growth of its revenues. In London, HSBC shares rose 5.8%.

Bollor earn 3%. The Group posted sharply stronger first half results, supported in particular by the strong performance of its transport and logistics operations. Its subsidiary with a share of 29.5% vivendi takes 1.3% for its part.

The automotive sector continues to recover on strong quarterly performance from Renault and Stellantis, despite the announcement of a 7.1% decline in new car registrations in France last month. Renault gaining 4.7%, stellantis 2.7% and fauresia 3.3%.

Vinci gives 0.5%. Grupo Aeroportuario del Centro Norte (OMA) announced that it has received a letter from investment fund Fintech Advisory regarding the indirect sale of 29.9% of the capital of the Mexican Airport Group to subsidiary Vinci Airports for a total of $815.4 million (797.3 million euros).