Cac 40 recovers after Nancy Pelosi’s visit to Taiwan, Market News

The Paris Stock Exchange is gaining momentum thanks to Wall Street after two sessions of falling in a row. Fears of heightened tensions between Beijing and Washington eased somewhat after Nancy Pelosi left Taiwan on Wednesday. However, many challenges remain, including the risk that the response of central banks to inflation will affect the global economy. Several Fed officials have also been more hawkish than expected about the surge in prices.

Business publications are generally in good shape, despite some disappointments, and activity in the US service sector, which accounts for more than two-thirds of jobs, recorded an unexpected acceleration to 56.7 points, according to data released by the Purchasing Institute. Management (ISM), after 55.3 in June. On the other hand, it fell in the euro area under the influence of a reduction in consumer spending, which faced rising prices.

Shortly after 4:00 pm Bedroom 40 increased by 0.81% to 6,462.01 points with a business volume of 1.3 billion euros. In New York Dow Jones receives 0.76%, and NASDAQ Composite 1.76%. The latter is reinforced by a 13 percent increase PayPal, which raised its full-year guidance and announced that Elliott Management holds a $2 billion stake in fintech. on their side Apple as well as Amazon get 2.7% and 3% respectively.

Fed ‘far from done with inflation’

Louis Fed Chairman James Bullard said he was determined to raise interest rates to bring inflation back to the 2% target. ” We’ll be strong and we’ll do it “, he said on CNBC this Wednesday.

The day before, Mary Daly, head of the San Francisco office, warned that the Federal Reserve “far from over fight inflation while his Cleveland colleague Loretta Mester waits for proof.” really convincing » that price growth is slowing down monthly. Same story with Charles Evans (Chicago), for whom a 50 basis point rise in September would be appropriate if inflation shows signs of improvement, while suggesting that, if not, a 75 basis point percentage tightening might also to be ” GOOD “.

The comments came as the market was hoping for moderation on the part of the Federal Reserve after Jerome Powell hinted last week that when the time is right it might be appropriate to scale back the upcoming rate hike. ” The Fed’s message is mixed, and it’s still too early for [les banques centrales] retreat Emmanuel Kau, Head of European Equity Strategy at Barclays, commented.

Pelosi continues his Asian tour

The speaker of the US House of Representatives drew China’s ire by traveling to Taiwan on Tuesday to meet with the island’s top leadership. In response, Beijing announced military exercises, including missile launches until Aug. 7, and urged airlines to avoid areas around Taiwan.

China also announced a halt to exports of natural sand to Taiwan, a key component in semiconductor manufacturing, and imposed an embargo on imports of many foodstuffs from the island. After leaving Taiwan, Nancy Pelosi continues her Asian tour through South Korea before heading to Japan on Saturday.

Delegates from OPEC+ (which includes members of the cartel and other oil-producing countries, including Russia) have agreed to increase production by 100,000 bpd starting in September, OPEC said on its website. A disdain for Joe Biden, who recently put pressure on Saudi Arabia. This increase marks a marked slowdown from the 648,000 bpd increase set for July and August. The reaction was immediate, with a barrel of Brent oil from the North Sea back to the $100 mark after shedding more than 1% this morning. Total Energy benefited from this with an increase of over 2%, thus contributing to the progress of Cac 40.

Axa, Societe Generale and Bic are doing better than expected

Aksa advance payment 5.7%. The insurer posted a net profit higher than analysts’ forecasts for the first half of the year and announced the launch of a new share buyback program for a maximum amount of 1 billion euros.

Company General increased by 3.1%. The bank reported lower-than-expected losses in the second quarter as the dynamism of its performance in both retail banking and the markets offset the impact of the sale of its Russian subsidiary, Rosbank.

Veolia gives 1.7%. The water and waste treatment giant posted a 22% drop in net profit to €236m in the first half, mainly due to the takeover of Suez and the depreciation of its operations in Russia. However, the group reported significant progress in the second quarter, citing a “successful” launch of the Suez integration and reaffirming its goals.

The automotive sector is weighed down by a decline in bmw its manufacturing forecast, which also warned of a worsening economy. In Frankfurt, the title fell by 6.3%. In Paris, Renault loses 1.5%.

bik rose by 5.8%. The maker of pens, lighters, razors and promotional items raised its 2022 revenue growth forecast after posting double-digit first-half year-over-year sales growth.