Cac 40 catches its breath after the recent “sale”, Atos continues to ride, market news

The Paris Stock Exchange rose several points on Tuesday morning after falling 8% in five days. Rebound in contracts future on US indices gives hope for the beginning of stabilization the next day after the S&P 500 entered the bear market. The broader index, which fell 3.9% at Monday’s close, did fall more than 20% from its January high, the lowest in a year.

Shortly before 10 a.m. Bedroom 40 stable at 6,025.79 points (+ 0.06%) with a business volume of 425 million euros.

The main sentiment remains negative, overshadowed by expectations of a significant increase in the Federal Reserve’s Fed rate, which begins a two-day meeting of its monetary policy committee on Tuesday. The probability of an increase of 75 basis points tomorrow was estimated by the market at about 5% on Friday, before inflation statistics shook the situation. At the opening on Monday it was estimated at 50%, and on Tuesday – about 95%.

The reversal of the curve continues

These expectations are further confirmed by the article Wall Street Journal assuming that the increase in power is expected as a result of a new surge in inflation to 8.6% in one year, which is the highest level since the end of 1981. An increase of 75 basis points would certainly be unexpected, as the Fed is doing. It is an honor to manage monetary policy expectations correctly, but a gesture of this magnitude is widely accepted.

The inversion of the yield curve continues, with the yield on 5-year US bonds this morning was 3.3942% against 3.3059% for a 30-year maturity, reflecting fears of a recession in the US economy. The curve between the 2-year-old and the 10-year-old yesterday also changed to the opposite for the first time since April.

In the Old Continent, consumer prices rose by 1.1% in one month in Germany in May and by 8.7% per year in the European Union. At the end of the morning, the market will track the ZEW index of economic sentiment on the Rhine in June. This afternoon in the United States will again be relevant inflation with the producer price index for the last month. Statistics, which will be published at 14:30, should show a slowdown compared to April.

Atos splits into two, leaving the CEO

In recent days there have been serious attacks, banks are recovering. BNP Paribas get 1.8%, Agricultural credit 1.1% and Societe Generale 2.5%.

Brent price rebound supports TotalEnergieswhich increased by 1.2%.

Ipsos advance of 2.9%. The opinion pollist predicts organic growth of 5% to 7% per year for 2023-2025 and revenue of up to 3 billion euros by 2025, including acquisitions.

Athos decreases by another 18.2%. The digital services group announced on Tuesday that it intends to split into two separate companies, and this strategic decision will lead to the departure of CEO Rodolphe Belmer by the end of September. Atos also announced the sale of its entire stake in the payment specialist World line, or 2.5% of the capital by approximately 225 million euros (33.41 euros per share). The latter lost 4.8%.

Air France-KLM falling by 11.4%. Back to its all-time low The airline said it had completed a € 2.25 billion capital increase, an operation in which CMA CGM, a global logistics specialist, owns 9% of the airline’s capital. .

Michelin yield 0.6%. JPMorgan reduced the tire manufacturer’s performance from “neutral” to “underweight” and reduced the target price from 140 to 110 euros. Among other analytical ratings, HSBC has moved from “buy” to “hold”. Score, which fell by 0.7%.