Concerns about results and rates, Cac 40 shaken but maintains 5900 points, market news

Geopolitical tensions, high inflation, declining consumer confidence, uncertainty about rate hikes and unprecedented quantitative tightening, and their impact on global liquidity, are likely to have a negative impact on the Mondial economy.. This is a warning given by the boss of a powerful American bank JPMorgan, Jamie Dimon, is by no means a surprise, but he still threw a chill on the financial markets. Moreover, the establishment, the largest in the US in terms of assets, disappointedly reported that its profit for the second quarter fell by 28% due to the created reserves to cover possible losses associated with the risk of a recession. Namely, it fixed 1.1 billion dollars (the same amount in euros) of reserves, while last year 3 billion dollars were released from the reserves. In New York, the title fell 4%. His sister Morgan Stanley is hardly in the best condition: its share fell by 1.4%. Due to a sharp downturn in investment banking and M&A advisory activities amid high market volatility, the bank’s earnings fell to $2.4 billion (the same in euros), or $1.39 per share for the quarter ended 30 June. compared to $3.4 billion, or $1.85 per share, a year earlier. All of this does not bode well for Citigroup and Wells Fargo, which are scheduled to complete Friday’s quarterly exercise at the same time as global asset management leader BlackRock.

In the stock market, operators continued to withdraw funds, those already wary in the face of growing recession risks. Stronger-than-expected acceleration of US inflation to 9.1% yoy in June and producer price index to 11.3% over the same period do not support the thesis that the US Federal Reserve (Fed) will hit again hard according to their June figures. 26 and 27 meetings, even if it means sacrificing growth. The previously dominant 75 basis point upside scenario, just like in June, is now giving way to a 100 basis point mega gain, as measured by the Fedwatch CME Group barometer. This implied probability is now 83.3% compared to 0% a week ago.

Oil at its lowest since the invasion of Ukraine

This is unlikely to reassure operators, especially as the European Commission cut its growth forecasts for the eurozone to 2.6% this year and 1.4% in 2023, while raising inflation forecasts to 7.6% in 2022. against 6.1%, initially predicted. In the end Bedroom 40 lost 1.41%, to 5915.41 points, with a volume of transactions of 2.8 billion euros (a day off on July 14 obliges). On the other side of the Atlantic, a grim environment is sending the three major indices down 1.3%. Dow Jones, NASDAQ Composite as well as S&P500. In the foreign exchange market, the single currency revolves around parity with the dollar. Finally, oil falls on fears of an impending recession. North Sea Brent fell below $100 after hitting 94.5, the lowest level since Russia’s invasion of Ukraine. Total Energywhich ended with a fall of 4.66%.

Among other values, Arkema fell 3.43% after UBS downgraded its view from “neutral” to “sell” and lowered its target price from 128 euros to 82 euros.

By his side Athos lost 4.56%. S&P Global Ratings has downgraded SSII’s credit rating to ‘BB’ from ‘BBB-‘, returning it to the junk bond (speculative bond). The downgrade reflects a negative outlook due to the group’s plan to split its business into two separate legal entities.