Despite many concerns, Cac 40 shows its best week in a month, market news

These are not the most important meetings that were not held this week. Between the reopening of the Nord Stream 1 gas pipeline, the decision of the European Central Bank (ECB) on monetary policy, the resignation of Mario Draghi, or the continuation of the corporate reporting season for the second quarter, operators have had many reasons to fear. Finally, Bedroom 40 Things are going well… Really good. The Paris index rose 3% in five days to 6,216.82 points, its best weekly performance in a month. On Friday, after a day without much enthusiasm, he added 0.25% on a business volume of 2.9 billion euros.

Investors were almost not afraid of the decline in private sector activity in the euro area in July. S&P Global’s composite PMI, which combines services and manufacturing activity, fell to 49.4 in a preliminary estimate, just below the 50 threshold that separates the contraction zone from the expansion phase. ” The breakdown of the numbers continues to point to general weakness across sectors and countries.notes Ricardo Amaro, senior economist at Oxford Economics. Production in manufacturing fell for the second month in a row, the decline accelerated sharply, and growth in the services sector almost stopped. Weakness in the manufacturing sector continues to weigh on the German economy, which is now in shrinking territory, while France continues to benefit from positive growth, but at a very moderate pace.. This does not bode well for the third quarter.

Rather indifferent to the PMIs, the market has also adjusted to the 50 basis point hike in key rates adopted by the European Central Bank, especially as this tightening of the screws, tighter than expected, was accompanied by the approval of a protection and transmission device (TIT) designed to combat growth spreads peripheral bondholders. ” Our assessment [de cet outil] mixed, commented Sebastien Wismara, senior economist at BNY Mellon Investment Management. Tools of this type have proven to be most effective when they can be activated quickly and flexibly, have few conditions, and are virtually unlimited in size. However, a number of budgetary and macroeconomic eligibility criteria must be reviewed by the Board of Governors before being activated. This raises a number of questions, especially given the end of Mario Draghi’s mandate in Italy and the growing uncertainty about the policies that the next Italian government might pursue.. »

In the stock market, these topics seem to have faded into the background in favor of Thursday’s restart of the Nord Stream 1 gas pipeline after a week-long repair. Even if the flow were less strong, the Russians would not turn off the tap completely, as some feared. The market is also positive about the fact that Russia and Ukraine are preparing to sign an agreement on grain exports.

Snap goes to Wall Street

On the corporate front, the reporting season for the second quarter continues, which was successful for some and disappointing for others. In the US, the name of the social network Twitter fell 0.8% after announcing below-expected quarterly results, especially in terms of subscriber growth. Turnover was partly affected by the uncertainty surrounding Elon Musk’s takeover bid. By his side Shares of Snap plunged 37% on disappointing quarterly results, raising fears of declining online ad revenue.

Somfy beat up in Paris

Closer to home, Haut-Savoyard Group, a global leader in building shutter and cover automation, Somfy fell 12.9% to last in SRD after posting near-zero growth in the second trimester. In doing so, Societe Generale moved from “buying” to “holding” value.

Ubisoft, whose game Avatar: Pandora’s Edge was released in stages, lost 1.34%. In addition, Deutsche Bank lowered the target price for the video game publisher from 60 euros to 50 euros.

Conversely, the advertising giant Publicis added another 1.54%, the next day after a jump of 5.05%. JPMorgan upgraded its rating from neutral to overweight and raised its price target from 63 euros to 70 euros. Also well oriented, property Gechina increased by 6.75% following an upward revision to the net regular earnings per share target for this year to €5.55, up 7%, excluding disposal effects, compared to 2021. Unibile-Rodamco-Westfield scored 6.25%, finishing first in the Cac 40 ranking. Finally, Lyon Events Specialist GL Events rose 10.44% after returning to profit in the first half and raising its growth forecast for the year.


PC