The Paris Stock Exchange rose slightly, supported by generally favorable corporate results in the US and Europe, as well as the prospect of the possible resumption of operation of the Nord Stream 1 gas pipeline on Thursday, as expected. Meanwhile, the market is awaiting Mario Draghi’s decision on whether to remain as chairman amid the political crisis in Italy. And this is on the eve of the monetary decision of the European Central Bank.
mid session, Bedroom 40 added 0.35% to 6,222.83 points with a business volume of 600 million euros. In other European countries Dax The Frankfurt Stock Exchange holds 0.41%, while FTSE Eb Milanese 0.21%. Contracts future US indices rose by about 0.2%.
next two days will be important in Europe with issues of gas flows, the future of Draghi, the anti-fragmentation mechanism and ‘last but not least’, Will the ECB choose to raise interest rates by 25 or 50 basis points tomorrow?Jim Reid of Deutsche Bank wrote in a note this morning. The very fact that we are considering a 50 basis point increase could potentially affect “direct pointing” that can be trampled under the force of inflation “, he concludes.
Drags in the hot seat
In a speech before the Senate this morning, Mario Draghi said that he had heard calls for him to remain as President of the Council, and that he was ready to respond favorably, while insisting on the need to restore the unity of the Council. government coalition with courage, altruism and reliability “. In other words, he will only stay if the parties unite around him and his political program. The debate will continue until a vote of confidence scheduled for the end of the day. Last week, he already submitted his resignation to the President of the Republic, who rejected him after the refusal “Movement 5 Stars” to vote for the support package.
His decision will be scrutinized by the European Central Bank ahead of its Board of Governors meeting. The ECB has warned markets that it will tighten monetary policy for the first time in 11 years on this occasion. The increase could be 50 basis points, up from 25 basis points announced last month, according to sources cited by Bloomberg, in exchange for an agreement on an anti-fragmentation mechanism designed to protect the eurozone’s most vulnerable economies, including Italy.
Carrefour sells its operations in Taiwan
In any case, the expectation of a larger-than-expected rate hike is supporting the euro, which trades at $1.0242, holding back the US dollar-denominated oil bill. A barrel of Brent oil from the North Sea, sensitive to recession fears and dollar evolution, added 1.1% to $106.20.
crossroads increased by 2.3%. The distribution group announced that it has signed an agreement to sell its 60 percent stake in Carrefour Taiwan to the Uni-President group, marking the French distributor’s reorientation to Europe and Latin America. The price of this operation could reach 1 billion euros.
Publicis the same goes up. American Omnicom reported a rise in earnings per share to $ 1.68 in the second quarter and an improvement of 0.7 points to 15.8% of gross operating income. Publicis is due to release its quarterly results on Thursday.
Chief proponent of Cac 40, Total Energy added 1.1%, while HSBC raised its target price from 57 to 60 euros.
Virbak vice versa gives 5%. The veterinary drugs maker confirmed that it expects organic growth of 5% to 10% of its turnover this year after reporting a 13.5% increase in revenue to 298.3 million euros published in the second quarter and a 7.8% increase in second quarter. constant exchange rates and perimeter.
Amundi occupies 0.6%. Goldman Sachs began to control the asset manager from a “buy” position up to 65 euros.
At the European level, Merge moved into the top Stoxx 600 with a jump of 16% after information from Handelsblatt that the details of its recapitalization by the government could be discussed with Chancellor Olaf Scholz on Friday.