TotalEnergies and banks, fuel sources for Cac 40, market news

After a 2% jump on Friday Bedroom 40, continuing its growth, received 0.93%, taking 6,091.91 points, with a trading volume of 2.4 billion euros in the summer. The Paris index rose on reports that China is putting pressure on banks to make it easier to finance the country’s big property developers. This was also facilitated by the increase Total Energy (+2.34%) and a bank branch. As for the oil major, it took advantage of the global rise in energy prices, both for black gold – a barrel of Brent oil from the North Sea rose 4.4% to $105.45 – and for gas, amid record heat in Europe and intensive use of air conditioning systems. Seconds lead their peers Bank of America and Goldman Sachs, who just released their results as of June 30th.

The scenario for banks is now known: the retail business benefits from rising interest margins, but new mortgage originations are reduced by rising interest rates and the risk of a recession, while market volatility and geopolitical tensions weigh on M&A and investment banking, encouraging while trading activities. Bank of America (+0.6%) and Goldman Sachs (+2.8%) fit perfectly into this template. But what’s interesting is how different people prepare for a crisis. When JPMorgan Chase, Wells Fargo, and Goldman Sachs increased their loan loss reserves by $428 million, $235 million, and $667 million, respectively, during the quarter, Bank of America, the second-largest U.S. bank in assets, released provisions for $48 million compared to $2.2 billion a year earlier. The rest of the week will shed more light on the strategies of US groups in the face of looming economic instability. A total of 75 S&P 500 companies will be active by Friday. closer to us, Alstom will open the ball tomorrow by posting its orders and sales for the first quarter of 2022-2023.

The manufacturer of railway equipment will be followed by Publicis as well as Thales, Thursday. The penultimate session of the week will be intense. On this day, operators will monitor the resumption of operation of the Nord Stream 1 gas pipeline, which was stopped on July 11 for repairs. Some European officials fear that Moscow will use gas weapons as a means of pressure in the face of sanctions related to the war in Ukraine. Necessary ” prepare for a scenario where we have to do without Russian gas at all “, – French head of state Emmanuel Macron warned during his July 14 speech.

Will the ECB hit harder?

The cut will be another thorn in the side of the European Central Bank, which is due to make its monetary policy decision on Thursday at 14:15. The institution has prepared the market for a 25 basis point hike in key rates, the first in eleven years, but shouldn’t that hit harder? ” The ECB normalized its monetary policy very late and cannot wait any longer. Christine Lagarde, its president, therefore needs to be hawkish and finally take action by raising the rate by 50 basis points, as opposed to the 25 basis points expected by the markets.says Frank Dixmier, Global CIO Fixed Income at AllianzGI. Indeed, it’s hard to imagine spending a summer with negative rates when eurozone inflation continues to rise, with 8.6% in May and a peak yet to come. The fall of the euro against the dollar, which raises commodity prices, is an additional argument for the Central Bank to demonstrate its determination. The ECB will also have to refine the contours of its “anti-fragmentation” tool, i.e. support for peripheral bonds, in particular Italian bonds, while Council President Mario Draghi is due to address Parliament on Wednesday after his resignation was rejected. , Italian President.

Across the Atlantic, the market expects a “limited” tightening of US Federal Reserve rates to 75 basis points next week. This de-escalation of expectations, which were 100 basis points last Thursday, is essentially fueled by comments from Gov. Christopher Waller and St. funds by ¾ percentage point.

Solvay sees above

Among other values, Solve rose by 4.54%. The chemical group plans to raise its guidance for 2022 after second-quarter performance far exceeded expectations.

Cable manufacturer Nexans added 1.83% thanks to Societe Generale, which raised its opinion from “hold” to “buy”.

Finally, the association of employees-shareholders and former employeesEDI announced his intention to “bring a criminal complaint with the constitution of a civil plaintiff” against the state for ” business disaster “. The share is still suspended from trading at the last price of 10.22 euros until further notice, and the state will announce its intentions to nationalize the electrician no later than Tuesday.