Cac 40 helped the banking sector, despite the reduction in activity in the Eurozone, Market news

The Paris stock exchange started August with limited gains, solid results from HSBC and the shipment of the first shipment of Ukrainian grain from the port of Odesa, helping to soften the deterioration in manufacturing activity in the eurozone. The S&P Global PMI index fell to 49.8 points in the final data for July, from 52.1 in June, thus signing its first passage below the 50-point threshold, which is synonymous with a contraction in activity, since June 2020.

This deterioration, which reflects rising recession risks, is accompanied by easing tensions in supply chains and ” a sharp easing of inflationary pressure in the manufacturing sector but not in the energy sector, says Chris Williamson, chief economist at S&P Global. He also notes that gas shortages will further hamper activity levels, which are likely to decline further.

In the middle of the session Bedroom 40 increased by 0.40% to 6,474.04 points with a business volume of 620 million euros. In other European countries Dax Frankfurt Stock Exchange takes 0.35% and FTSE Eb Milan 1.33%. Contracts future on American indices, the yield is from 0.1% to 0.2%.

The Fed is not as dovish as it seems

Global financial markets posted their best monthly performance since 2020 in July, buoyed by broadly favorable corporate releases and a sense that the US Federal Reserve may scale back its next monetary tightening.

This interpretation of the future evolution of the US central bank’s monetary policy is considered by economists to be optimistic, to say the least, especially after Neil Kashkari, president of the Minneapolis Fed, confirmed on Sunday that the main goal of the Federal Reserve is to reduce inflation. returned to 2%, while his counterpart at the Atlanta Fed, Rafael Bostic, said shortly before that there was more to be done in terms of monetary tightening.

BNY Mellon also advises against betting on a more dovish Fed rate move. ” We believe that the press conference [de Jerome Powell] actually contained some elements ‘hawkish’, including 78 different allusions to inflation in a 26-page transcript. It seems clear to us that the Fed is nowhere close to concluding that inflation is back under control and that further hikes will be needed, even at the cost of a mild recession and/or a weakening labor market. writes John Velis, US Forex and Macro Strategist at BNY Mellon.

In the bond market, the yield on the US 10-year note fell 3 basis points to 2.67%, while the Italian BTP yield of the same maturity stabilized at 3.01% after falling below the 3% threshold for the first time since May.

Air France-KLM and banks in sight

The week ahead will be buoyed by monetary decisions from the Bank of Australia and the Bank of England, the OPEC meeting to decide on production in September, and the employment report in July. in the United States.

Company releases will also continue with around 170 S&P 500 companies including Capterpillar, AMD, Starbucks and Uber, not to mention Europe’s BP, Merck, BMW, Infineon, Bayer, Beiersdorf, Lufthansa and Asia’s Alibaba and Nintendo. In France, the five components of the Cac 40 will show their quarterly results, namely: Bouygues, Axa, Société Générale, Veolia Environnement and Crédit Agricole.

Air France-KLM rose 5.1%, thanks to HSBC’s rating of the carrier’s name changing from “hold” to “buy”.

BNP Paribas increases by 1.5%, Agricultural credit by 0.4% and Sausage General 1% after better-than-expected quarterly results from Sino-UK HSBC, which has benefited from rising interest rates and has pledged to return its dividend to pre-healthcare crisis levels as soon as possible. The bank also raised its profitability forecast, counting on revenue growth. In London, HSBC rose by 5.8%.

Bollore earn 3%. The group posted sharply higher results for the first half of the year, supported, in particular, by good indicators of its transport and logistics activities. Its 29.5% subsidiary Vivendi assumes 1.3%.

The auto sector continues to recover, still thanks to strong quarterly results from Renault and Stellantis, despite the announcement of a 7.1% drop in new car registrations in France last month. Renault gains 4.7%, Stellantis 2.7% and Faurecia 3.3%.

Vinci yield 0.5%. Grupo Aeroportuario del Centro Norte (OMA) has announced that it has received a letter from investment fund Fintech Advisory regarding the indirect sale of 29.9% of the capital of the Mexican airport group to its subsidiary Vinci Airports for a total of $815.4 million (€797.3 million).