The Paris Stock Exchange continues its momentum this session, once again buoyed by business publications and the economy. The luxury sector is in the spotlight following the quarterly results of Hermès and L’Oréal, which follow those of LVMH and Kering. On the other side of the Atlantic, Apple and Amazon also posted better-than-expected quarterly results, allowing the two names to advance in deals after the sale in New York. What supports contracts future on American indices, and in particular on the Nasdaq 100, by 1.5%.
Around 9:45 in the morning at Bedroom 40 rose 1.34% to 6,424.16 points after a peak of 6,554.47, unprecedented since June 9, on business volume of 625 million euros.
Get out of megamonetary restrictions?
Markets remain under the impression that the US Federal Reserve will cut rate hikes. The 0.9% contraction in the US economy in the second quarter, which follows a 1.6% contraction in the first, does add to the sense that inflation will slow, allowing the Fed to be less aggressive.
Investors were reassured there is no longer a need to fear an aggressive cycle of monetary tightening that could push the economy into recession, since it is already in a technical recession (not to be confused with a real recession, of course), and the threat to the economy is already such that the Fed can take a less hawkish approach notes Craig Erlam, market analyst at Oanda.
Inflation in Europe and the USA
Financial markets are on track to end a second straight week of gains. A grain of sand that could hold back the recent revival of optimism is the risk of persistently high inflation. In France, consumer price growth accelerated to 6.8% in July after 6.5% in harmonized data for the eurozone. GDP, on the other hand, rebounded by 0.5% in the second quarter after contracting by 0.2% in the first. Next, the first data on July inflation and GDP of the Eurozone in the second quarter.
In the United States, the market will watch household income and spending, but above all the core PCE index, the inflation gauge the Fed tracks most closely. The central bank is also keeping a close eye on the 1-year inflation expectations component of the University of Michigan consumer sentiment index, which will be released at 4 p.m. Analysts expect confirmation of this indicator at the level of 5.2% in the final data for July, after 5.3% in June.
A season of good results
Hermes occupies 7.1%. The luxury saddler posted strong first-half results, marked by a sharp rise in profits and a rebound in sales in China in June. in his wake LVMH gains 1.3%. Loreal for its part, holds 4.5% after reporting a 25.2% increase in net profit in the first half and reaffirming its goal to increase turnover and results this year, higher than the global beauty market.
Capgemini advance 6.8%. SSII raised its annual revenue growth target at constant exchange rates following a strong first-half performance increase.
Renault increases by 6.9%. The automaker raised its annual targets, while half-year results were hit by the semiconductor crisis and shutdowns in Russia, but came in well above analysts’ expectations.
BNP Paribas increased by 3.24%. The bank posted better-than-expected second-quarter results thanks to lower bad debt provisions despite a slowing economy and buoyant activity, particularly in markets.
perfectly yield 0.8%. The electrical infrastructure specialist raised its 2022 targets after recording steady sales growth in the first half. In the current year, he expects sales to grow by 9-12% excluding the impact of exchange rates, while he previously expected growth of 5% to 11%. Organic growth should be between 6% and 9% and will be complemented by economies of scale of around 3%.
Vinci rose in price by 2.6%. The construction and concessions group raised annual targets for its airports division and confirmed other outlooks, while its net profit jumped to 1.9 billion euros in the first half from 682 million a year earlier.
EssilorLuxottica yield 0.2%. The ophthalmic optics giant posted higher results in the first half of 2022, but was still marked by a slowdown in activity in the second quarter amid a deteriorating macroeconomic environment.
Engie rose in price by 1.1%. The energy company posted sharply higher results for the first half of 2022, which was marked by very high energy prices amid the war in Ukraine, and indicated that it had significantly reduced its exposure to Russian gas.