Cac 40 reinsured against the avalanche of publications this week, Market News

The Paris Stock Exchange lost ground on Monday morning as investors curtailed initiatives at the start of the busiest week of the business season, especially as several macroeconomic leads are also on the agenda for the following days.

Around 9:30 am Bedroom 40 lost 0.38% to 6,192.90 points on a business volume of 220 million euros.

As such, volatility is set to be high as 175 S&P 500 companies, or more than a third of the total, are due to release their second quarter results this week. Among this stream of publications, Gafam will take a prominent place, and the failure of the social network Snap raises fears about the deterioration in the performance of companies dependent on online advertising revenue.

Three quarters of companies Cac 40 on the grill

Participants in the automotive and oil sectors will also be honored, as will companies considered economic health barometers such as UPS, Caterpillar, Boeing and 3M. In France, 30 Cac 40 components will do the same, including the biggest Paris market capitalizations such as LVMH, Hermès, TotalEnergies, Sanofi, L’Oréal or even Airbus.

The economy will not be outperformed with second-quarter GDP for the eurozone and the United States, the first estimate of inflation in July at around nineteen and, of course, the Fed’s monetary decision on Wednesday night, which should again opt for a 75 basis point increase in the federal funds rate. According to the Atlanta Fed’s GDP Now tracker, which tracks expectations based on economic performance, the market expects the US economy to contract by 1.6% after falling the same amount in the first quarter, which would meet the definition of a recession with two consecutive quarters of contraction. However, the consensus calls for US GDP growth of 0.3%.

Faurecia and Plastic Omnium confirm

The latest PMI indices in the private sector in Europe and the US for July reflected a reduction in activity. Thus, Ifo’s German business climate index for the same month will be of particular interest in the late morning.

fauresia occupies 0.7%. Forvia, the automotive supplier born from the merger of the French group and Germany’s Hella, reiterated its full-year guidance, while its half-year results were hit by an inflationary environment.

His competitor plastic omnium remains flat after also reaffirming its guidance for fiscal 2022 as it beat analysts’ forecasts in the first half.

In the same sector Valeo decreased by 1.9%, while Renault rises by 0.8%.

Eutelsat a drop of 10.8%. The satellite operator announced that it has entered into negotiations with its OneWeb co-shareholders with a view to a possible merger of the two companies through a share swap. Eutelsat already owns 23% of a UK company that is developing a high-speed Internet service covering areas not served by terrestrial communications.

The largest increase Cac 40, Orange rose by 1.3%. The French operator and Masmovil announced that they have signed an agreement to merge their activities in Spain, the result of exclusive negotiations initiated in this direction at the beginning of March 2022.

Total Energy lost 1.2% amid falling oil prices, which have fallen by almost 10% since the beginning of the month.