Cac 40 focuses on Nord Stream 1 and the political future of Mario Draghi, Market news

Paris stocks edged higher on broadly favorable corporate results in the United States and Europe and the prospect of the Nord Stream 1 gas pipeline possibly reopening on Thursday as expected. Meanwhile, the market awaits Mario Draghi’s decision on whether or not to stay on as chairman amid Italy’s political crisis. And this is on the eve of the monetary decision of the European Central Bank

In the middle of the session Bedroom 40 increased by 0.35% to 6,222.83 points with a business volume of 600 million euros. In other European countries Dax Frankfurt Stock Exchange occupies 0.41% and FTSE Eb Milan 0.21%. Contracts future on American indices grew by about 0.2%.

The next two days will be important for Europe on gas flows, the future of Draghi, the anti-fragmentation mechanism and “last but not least” whether the ECB will choose to raise interest rates by 25 or 50 basis points tomorrowDeutsche Bank’s Jim Reid wrote in a note this morning. The very fact that we expect a 50 basis point hike could potentially affect the “front management” which could be trampled by the force of inflation “, he concludes.

Draghi is in the hot seat

In a speech to the Senate this morning, Mario Draghi said he had heard calls for him to stay on as Council President and that he was prepared to respond favorably, while insisting on the need to restore Council unity. government coalition with ” courage, altruism and reliability “. In other words, he will only stay if the parties unite around him and his political plan. The debate will continue until the no-confidence vote scheduled for late afternoon. Last week, he already submitted his resignation to the President of the Republic, who rejected it after the refusal of the 5-Star Movement to vote for the package of support measures.

His decision will be scrutinized by the European Central Bank ahead of a meeting of its governing council. The ECB has warned markets that on this occasion it will implement its first tightening of monetary policy in 11 years. The increase could reach 50 basis points, up from the 25 announced last month, according to sources cited by Bloomberg, in exchange for an agreement on an anti-fragmentation mechanism designed to protect the euro zone’s most fragile economies, including Italy.

Carrefour is selling its operations in Taiwan

In any case, expectations of a bigger-than-expected rate hike are supporting the euro, which is trading at $1.0242, holding back the US currency-denominated oil bill. A barrel of Brent from the North Sea, sensitive to fears of a recession and a change in the dollar, fell 1.1% to $106.20.

Crossing increased by 2.3%. The distribution group announced the signing of an agreement to sell its 60% stake in Carrefour Taiwan to the Uni-President group, a decision that marks the reorientation of the French distributor to Europe and Latin America. The price of this operation can reach 1 billion euros.

Publicis the same amount rises. America’s Omnicom reported a rise in second-quarter earnings per share to $1.68 and a 0.7 point improvement in gross operating margin to 15.8%. Publicis is due to report quarterly results on Thursday.

The main supporter of Cac 40, TotalEnergies rose 1.1%, while HSBC raised its price target from €57 to €60.

Virbak on the contrary, 5% is inferior. The veterinary medicine maker confirmed that it expects organic growth of between 5% and 10% of its turnover this year, after publishing figures showing a 13.5% rise in revenues to €298.3m in the second quarter and 7.8% on a constant basis. exchange rates and perimeter.

Amundi occupies 0.6%. Goldman Sachs has put the asset manager on “buy” watch to target €65.

At the European level, Unite moved to the top of the Stoxx 600 with a jump of 16% after information from Handelsblatt that the details of its recapitalization by the government could be discussed with Chancellor Olaf Scholz on Friday.