Growth to continue in Paris, inflation and results still on the agenda, morning session

The Paris Stock Exchange should continue its momentum in this session, once again encouraged by the economy and company publications. Apple and Amazon delivered better-than-expected quarterly results, allowing the two games to progress in aftersales deals in New York. What Contracts Support future on American indices, and in particular on the Nasdaq 100.

Markets remain under the impression that the US Federal Reserve will roll back its interest rate hike. The 0.9% contraction in the US economy in the second quarter, which follows 1.6% in the first quarter, does reinforce the feeling of slowing inflation, which allows the Fed to act less aggressively.

Way out of mega-money puffs?

Investors reassured there is no longer any need to fear an aggressive monetary tightening cycle that could push the economy into recession as it is already in a technical recession (certainly not to be confused with a real recession) and the threat to the economy is already so the Fed can take a less stringent approach notes Craig Erlam, market analyst at Oanda.

Financial markets are on track to complete their second week of growth in a row. The grain of sand that could dampen the recent resurgence of optimism is the risk of persistently high inflation. In France, GDP grew by 0.5% in the second quarter after contracting by 0.2% in the first. Further, the first data on July inflation and Eurozone GDP in the second quarter.

More annual targets

In the United States, the market will keep an eye on household income and spending, but most notably on the main PCE personal consumption expenditure index, the inflation measure most closely followed by the Fed. The central bank is also closely monitoring the annual inflation component of the University of Michigan Consumer Confidence Index, due at 4:00 pm. Analysts expect this indicator to be confirmed at 5.2% in the final data for July after 5.3% in June.

BNP Paribas posted better-than-expected 2Q results thanks to lower bad debt provisions despite slower economic growth and strong market activity, especially.

Renault raised its full-year targets while its half-year results were hit by the semiconductor crisis and the shutdown in Russia, but came in well above analysts’ expectations.

Big raised its targets for 2022 after posting solid first-half sales growth. The electrical infrastructure specialist expects FX sales growth of 9% to 12% this year, up from 5% to 11% previously. Organic growth should be between 6% and 9% and will be complemented by economies of scale of around 3%.

EssilorLuxottica posted stronger results in the first half of 2022, but is still characterized by a slowdown in activity in the second quarter amid a deteriorating macroeconomic environment.

Hermes posted regular operating income of 2.3 billion euros in the first half, above analysts’ expectations. Turnover increased by 20% to 2.71 billion euros at constant exchange rates, supported by continued strong demand.

Angie published sharply stronger results for the first half of 2022, marked by very high energy prices amid the war in Ukraine, and indicated that it had significantly reduced its dependence on Russian gas.

Vinci reaffirmed its full-year guidance after announcing 26.3% sales growth and 75% profit growth in the first half.

Loreal announced an increase in the share of net profit of the group by 25.2% to 3.25 billion euros in the first half of the year. The cosmetics giant also reaffirmed its goal of increasing turnover and results this year higher than the global beauty market.

Capgemini raised its full-year revenue growth target at constant exchange rates following a significant improvement in first-half results.