Powell effect weighed down by some disappointments in corporate results, market news

After briefly breaking the threshold of 6300 points for the first time since June 10, the Paris Stock Exchange is marking time. While well-received, the prospect of a less aggressive Fed on interest rates nonetheless becomes promising due to a very subdued perception of certain results from stock market heavyweights, as well as deteriorating economic sentiment in the eurozone. . . . The index, published by Eurostat, fell 4.5 points to 99 in July, its lowest level since February 2021, due to recession fears.

mid session, Bedroom 40 remains stable at 6,256.75 points (-0.02%) after a peak of 6,307.03 (+0.78%) on a business volume of 1 billion euros. Contracts future US indices fell 0.1% over Dow Jones and 0.8% for Nasdaq 100. Meta a 6% drop in New York premarket. Last night, Facebook’s parent company announced its first-ever drop in quarterly turnover. Apple and Amazon will release their results after Wall Street closes.

Growth of megarates behind?

The Fed, as expected, raised the main key rate for the second time in a row by 75 basis points, bringing it to the range of 2.25% -2.5%. During his press conference, Jerome Powell showed determination to fight inflation in an attempt to calm expectations of the next tightening of monetary policy. In particular, he pointed out that ” at some point it would be appropriate to slow down ‘ without giving details.

Central banks must consider both rising prices and recession risks. Thus, JPMorgan analysts believe that this year they should continue the cycle of tightening monetary policy. But it turns out” it is increasingly likely that the high point of the pace of rate hikes is already behind Others point out that Jerome Powell’s speech is more ambiguous than it sounds, especially since “direct guidance” is no longer relevant.

Mike Wilson, chief US equities strategist and chief investment officer at Morgan Stanley, warned against the temptation to bet on stocks despite the rally following the Fed’s decision. When asked by CNBC, he said that ” the market always rises as soon as the Fed finishes raising rates, until a recession begins. But he feels that unlikely that the time lag between the end of the tightening campaign and the recession is significant. In the end it will be a trap “, he concludes.

Jerome Powell also indicated that the next decisions will be made meeting by meeting, suggesting that perhaps a less restrictive approach will depend on economic performance. In the bond market, the yield on US 10-year bonds remained stable at 2.78%, while in the foreign exchange market, the dollar fell against other currencies, especially the yen. The euro dares to fall to $1.0191 after jumping 0.9% overnight.

Schneider Electric and Ipsen in sight, Scor damaged

Investors’ attention is now focused on the first estimate of US GDP in the second quarter. The consensus formed by Bloomberg suggests a 0.5% year-on-year growth after contracting 1.6% for the first time. In addition, early in the day will be published the first data on the dynamics of consumer prices in Germany in July.

Schneider Electric advance payment 4.4%. The electrical equipment maker raised its 2022 operating profit and revenue growth targets after posting strong first-half results.

ArcelorMittal increased by 4.3%. The steel giant certainly posted a net income that dropped slightly to $3.92 billion in the second quarter, but the free cash flow generation and share buying program are being welcomed by analysts confident in the group’s financial discipline.

stellantis rose by 3.1%. The automaker has announced new record results, margins achieved on its electrified Jeep, Fiat and Peugeot vehicles have enabled it to excel in the context of ” especially difficult “.

STMicroelectronics is gaining 2.9%. The semiconductor maker reported better-than-expected second-quarter results and raised expectations for all of 2022 amid strong demand for its products.

Saint-Gobain wins 2.5%. The building materials maker posted record operating results and double-digit margins at the end of June. At 11%, it rose by 0.3 points over the year. The building materials maker also reiterated its guidance for the full year, i.e. an increase at comparable exchange rates in its operating profit compared to 2021.

Kering occupies 1.9%. The luxury group reported a 12 percent increase in sales from April to June. However, the growth of the flagship brand Gucci is only 4% due to store closures and restrictions in China.

Ipsen jumped by 14.2%. The pharmaceutical company has raised its 2022 targets after releasing robust half-year results.

Vice versa, check a 13.4% drop after posting a net loss of 239 million euros in the first half against a profit of 380 million a year earlier. The drought in Brazil, the war in Ukraine and the continuation of the Covid epidemic have particularly affected productivity.

Airbus flounder 5.4%. The aircraft manufacturer has lowered its aircraft delivery plan for 2022 and has postponed the production of 65 aircraft per month for the A320 family to early 2024 due to difficulties encountered in its supply chain. Now Airbus expects to deliver about 700 aircraft this year, not 720. The rest of the targets remain.

Accor falls by 7%, despite the announcement of a sharp increase in its results in the second quarter. But annual projections are considered ” stupid analysts.

Orange decreased by 3.2%. The incumbent confirmed that it is aiming for a 2.5% to 3% increase in restated adjusted gross operating profit (Ebitdaal) compared to the same period in 2022, while this figure increased modestly in the first half of the year.

Total Energy loses 3.4%. The oil group announced a new share buyback program after it recorded a jump in its results in the second quarter of 2022, once again driven by a sharp rise in hydrocarbon prices amid the war in Ukraine.

crossroads gives 3.2%. The distributor announced that it is accelerating cost-cutting measures this year after a fall in adjusted net income in the first half of the year. Accounts are ” stupid with operating profit at the bottom of the already lower forecast range pulled down by Europe, JPMorgan analysts summarize.