Despite numerous concerns, Cac 40 shows the best week of the month, Market News

It’s not the key meetings that didn’t happen this week. Operators had many reasons to fear from the resumption of the Nord Stream 1 gas pipeline, the decision on the monetary policy of the European Central Bank (ECB), the resignation of Mario Draghi or the continuation of the corporate earnings season in the second quarter. Finally, Bedroom 40 feels good… Really, really good. The Paris index rose 3% in five days to 6,216.82 points, its best weekly performance in a month. On Friday, after a day without much enthusiasm, it gained 0.25% and the volume of business was 2.9 billion euros.

Investors were almost unfazed by the decline in private sector activity in the Eurozone in July. The S&P Global composite PMI, which combines activity in the services and manufacturing sectors, fell to a preliminary estimate of 49.4, just below the 50 threshold that separates contraction from expansion. ” The breakdown of numbers continues to point to broad weakness across sectors and countriesnotes Ricardo Amaro, senior economist at Oxford Economics. Industrial output fell for the second month in a row, with the decline accelerating sharply, while growth in the services sector barely stalled. Weakness in the manufacturing sector continues to weigh on the German economy, which is currently in recession, while France continues to benefit from positive growth, but at a very moderate pace.. This bodes ill for the third quarter.

Fairly indifferent to PMIs, the market also adjusted to the European Central Bank’s decision to raise key rates by 50 basis points, especially as this tighter-than-expected tightening was accompanied by the approval of a protection and transmission instrument (IPT) designed to combat with a rise in spreads holders of peripheral bonds. ” Our assessment [de cet outil] mixed, commented Sebastien Wismara, senior economist at BNY Mellon Investment Management. Tools of this type have proven to be most effective when they can be activated quickly and flexibly, have few conditions, and are virtually unlimited in size. However, a number of budgetary and macroeconomic eligibility criteria will need to be reviewed by the Board of Governors prior to their activation. This raises a number of questions, especially given the end of Mario Draghi’s mandate in Italy and the growing uncertainty about the policies that the next Italian government may pursue.. »

In the stock market, those topics appear to have taken a back seat in favor of the restart of the Nord Stream 1 gas pipeline on Thursday after a week of repairs. Even if the flow is less strong, the faucet has not been completely shut off by the Russians, as some feared. The market also appreciates that Russia and Ukraine are preparing to sign an agreement on the export of grain.

Instantly dives into Wall Street

On the corporate front, second-quarter earnings season continues, with success for some and disappointment for others. In the US, the name of a social network Twitter fell 0.8% after announcing quarterly results below expectations, especially in terms of subscriber growth. The turnover was partly affected by the uncertainty surrounding Elon Musk’s takeover proposal. at his side Snap fell 37%, weighed down by disappointing quarterly results that raised concerns about declining online advertising revenue.

Somfy will make a splash in Paris

Closer to home, Haut-Savoyard group, world leader in motorization of shutters and closings for buildings, Somfy fell 12.9%, last in the SRD, after announcing almost zero growth in the second quarter. In the process, Societe Generale moved from “buying” to “holding” value.

Ubisoft, whose Avatar: Frontier of Pandora game was released in stages, lost 1.34%. Deutsche Bank also cut its price target for the video game publisher from €60 to €50.

And vice versa, the advertising giant Publicis gained another 1.54%, the day after jumping 5.05%. JPMorgan raised its recommendation from “neutral” to “overweight” and increased the target price from 63 to 70 euros. It also navigates well, property Hetsina rose 6.75% after upwardly revising its net current earnings per share target this year to €5.55, up 7% excluding disposals from 2021. Unibale-Rodamco-Westfield scored 6.25% to finish at the top of the Cac 40. Finally, the event specialist in Lyon GL events rose 10.44% after returning to first-half profit and raising its growth forecast for the year.