Cac 40 in the green, contraction of the US economy confirms the position of the Fed, Market news

Volatile session on financial markets again. After going into the red at the end of the morning, the Paris exchange returns to the threshold of 6,300 points for the first time since June 10. The prospect of a less aggressive Fed turn was bolstered by an unexpected 0.9% year-on-year contraction in the US economy in the second quarter, according to the Commerce Department’s first estimate. Thus, after the fall in GDP by 1.6% recorded three months earlier, the American economy theoretically entered a recession. In the bond market, the yield on the 10-year U.S. note fell 11 basis points to 2.6714% after hitting 2.667%, the lowest level since April 14.

On the Old Continent, consumer price growth accelerated in Germany to 8.5% year-on-year in July, where the market had expected a slowdown to 8.1% after 8.2% in June. In addition, economic sentiment in the eurozone worsened during the same month, with an index compiled by Eurostat falling 4.5 points to 99, the lowest level since February 2021, weighed down by fears of a recession.

Around 4 p.m Bedroom 40 rose by 0.64% to 6,298.03 points after peaking at 6,308.46 (+0.80%) on a business volume of 1.85 billion euros. in New York, Dow Jones gives 0.59% and Nasdaq Composite 1.03%. Goal gives 8.5%. Last night, Facebook’s parent company announced its first-ever drop in quarterly revenue. Apple and Amazon will release results after the Wall Street close.

Megarails behind?

The Fed, as expected, raised its main key rate by 75 basis points for the second straight time, to a range of 2.25%-2.5%. During his press conference, Jerome Powell demonstrated his determination to fight inflation while trying to calm expectations for another tightening of monetary policy. In particular, he noted that ” at some point it would be advisable to slow down “, without giving more details.

Falling commodity prices and easing supply pressures suggest that inflation in the commodity sector should moderate. However, changes in consumer prices may remain problematic, while service sector inflation will take time to reverse. As a result, the risk remains that the Fed will have to trigger a recession to regain control of inflation. says Keith Wade, chief economist at Schroders.

Mike Wilson, chief U.S. equity strategist and chief investment officer at Morgan Stanley, cautioned against the temptation to bet on stocks despite the rally after the Fed’s decision. When asked on CNBC, he said that “ the market always goes up when the Fed stops raising rates until a recession starts. But he feels himself unlikely that the time gap between the end of the austerity campaign and the recession is significant. It will be a trap after all “, he concludes.

Jerome Powell also indicated that further decisions would be made after the meeting, suggesting that perhaps a less restrictive approach would depend on economic indicators.

SchneiderElectric and Ipsen are visible, Scor is damaged

Schneider Electric advance 5.9%. The electrical equipment maker raised its 2022 operating profit and revenue growth targets after posting solid first-half results.

Stellantis rose in price by 4.5%. The automaker announced new record results, profits achieved on its electrified vehicles Jeep, Fiat and Peugeot allowed it to succeed in the context of ” especially difficult “.

And vice versa, Airbus flounder by 4.1%. The plane maker lowered its 2022 aircraft delivery target and pushed back its production target of 65 planes per month for the A320 family to early 2024 due to supply chain challenges. Airbus now expects to deliver about 700 planes this year, not 720. Other targets remain.

TotalEnergies loses 2.9%. The oil group certainly posted record profits in the second quarter, but analysts were disappointed by the share buyback program they had hoped for more.

TV appearance loose 4%. The customer service outsourcing giant posted slightly better-than-expected first-half revenue and maintained its full-year outlook. A confirmation that Citi analysts consider “conservative.”

score fell 15.6% after a net loss of 239 million euros in the first half against a profit of 380 million a year earlier. The drought in Brazil, the war in Ukraine and the continuation of the Covid epidemic particularly affected the results.

Ipsen jumped by 16%. e pharmaceutical company raised its 2022 targets after posting solid half-year results.

according to down 10% despite announcing a sharp recovery in its second-quarter results. But annual forecasts are taken into account” dull analysts