IMF forecast cuts, Russian gas and Walmart warning, Cac 40 sees red, market news

After six increases in seven sessions, the Paris Stock Exchange stalled, hampered by a profit warning from Walmart, further IMF cuts to global growth forecasts to 3.2% this year from 3.6% in April, and the prospect of falling gas consumption in Europe. EU energy ministers have indeed reached an agreement to reduce their consumption by 15% between August 2022 and March 2023 due to uncertainty over supplies from Russia. However, some countries were granted derogations.

Shortly before 16:00, Bedroom 40 lost 0.50% to 6,206.23 points on a business volume of 1.22 billion euros. In New York Dow Jones gives 0.35% and NASDAQ Composite 1.19%.

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Gas supply is a major concern, especially after Gazprom announced it plans to cut flows to Germany via the Nord Stream 1 gas pipeline to 20% of capacity from Wednesday. These cuts are encouraging Europeans to turn to oil to achieve their energy goals. Thus, a barrel of Brent oil from the North Sea rose by 1.8% to $106.74. Total Energy get 1%.

I don’t think the risk of Russian gas cuts is significantly factored into European stocks.Paul Jackson, head of asset allocation at Invesco, told Bloomberg TV. If supplies drop sharply, it will lead to a serious recession, and I don’t think it’s factored into the price yet. “, he added.

On Wall Street walmart, which now expects annual profits to fall from 11% to 13%, fell 8%. A leading global retailer said its customers are prioritizing spending on food and fuel over clothing and other more profitable discretionary spending as inflation eats into household budgets. Amazon follows with a drop of 4.3%.

Fed and Gafam under gunpoint

At the European level, the Stoxx 600 Retail Index shows the biggest decline in the industry with a 3.6% drop. In Paris, Casino loses 5%, while falling to its historical minimum. crossroads for its part gives 0.7%.

Investors are also eyeing Washington, where the US Federal Reserve is starting a two-day meeting of the monetary policy committee on Tuesday. The market usually expects a further increase in the bond rate by 75 basis points. federal funds tomorrow, not completely excluding a more aggressive move. The probability of growth by 100 basis points is estimated by the market at about 10%.

This week also marks the release of Gafam’s quarterly results. Alphabet and Microsoft will publish their quarterly reports after Wall Street closes. Apple, Meta Platforms (Facebook) and Amazon will join by Thursday evening. In France, 28 Cac 40 components are scheduled to participate in the exercise from tonight (Michelin, LVMH) until Friday.

Eutelsat and Soitec hit by sanctions

Dasso Systems rose by 1.7%. The software publisher raised its 2022 diluted earnings-per-share guidance after a second quarter in which its results broadly beat the expectations of its leaders and analysts.

Eutelsat a further fall of 14.5%. The satellite operator announced on Tuesday that it had signed a memorandum of intent to merge with its British rival OneWeb. The deal, which will cost OneWeb $3.4 billion (€3.3 billion), will be done through a share swap.

Soitek lose 7.1%. The semiconductor maker confirmed its targets for the 2022-2023 fiscal year, but saw a marked slowdown in growth in the first quarter ending at the end of June. Revenue reached €203m, up just 12% as reported and up 6% on a flat volume and exchange rate basis. Analysts at Credit Suisse note that annual revenue growth ” slowed down significantly come out 14% below consensus.

edenred receives 3.4%. The payment voucher specialist has indicated that he is aiming for a record gross operating profit (Ebitda) in 2022 of between €770 million and €820 million after a sharp rise in half-year results.

Veolia Environment decreased by 3.9%. JPMorgan, which took over the cover of the underweight title, says it is pessimistic about the impact the European energy crisis will have on the group.

Among other analyst notes, Exane BNP Paribas downgraded the rating of the cement company. Vika (-5.2%) from “better” to “neutral”.