Powell effect dampened by some disappointment in corporate results, Market News

The Paris stock exchange briefly crossed the 6,300-point threshold for the first time since June 10. While the prospect of a less aggressive Federal Reserve on its interest rates is well-received, it is still being viewed on the back of a very subdued take on certain stock market heavyweights, as well as worsening economic sentiment in the Eurozone. The index, published by Eurostat, fell 4.5 points to 99 in July, the lowest level since February 2021, on fears of a recession.

In the middle of the session Bedroom 40 steady at 6,256.75 points (-0.02%) after peaking at 6,307.03 (+0.78%) on €1 billion business. Contracts future on American indices fell between 0.1% per Dow Jones and 0.8% for Nasdaq 100. Goal down 6% in the New York premarket. Last night, the parent company of Facebook announced its first ever drop in quarterly revenue. Apple and Amazon will report 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.

Central banks must take into account both price jumps and recession risks. According to JPMorgan analysts, they should continue their cycle of monetary tightening this year. But it turns out it is increasingly likely that the peak of rate hikes is behind us “. Others point out that Jerome Powell’s speech is more ambiguous than it seems, especially because the “prospective guidance” is no longer relevant.

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 by 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 noted that further decisions would be made on a meeting-by-meeting basis, suggesting that perhaps a less restrictive approach would depend on economic performance. In the bond market, the yield on the US 10-year note was steady at 2.78%, while in the foreign exchange market, the dollar fell against other currencies, particularly the yen. The euro ventures lower to $1.0191 after a 0.9% overnight jump.

SchneiderElectric and Ipsen are visible, Scor is damaged

Investors are now focused on the first estimate of US GDP in the second quarter. A consensus compiled by Bloomberg expects growth of 0.5% year-on-year after a contraction of 1.6% in the first. Follow also, at the beginning of the day, the first data on the evolution of consumer prices in July in Germany.

Schneider Electric advance 4.4%. The electrical equipment maker raised its 2022 operating profit and revenue growth targets after posting solid first-half results.

ArcelorMittal increased by 4.3%. The steel giant certainly posted net income that fell slightly to $3.92 billion in the second quarter, but free cash flow generation and a share buyback program were welcomed by analysts who were reassured by the group’s financial discipline.

Stellantis rose in price by 3.1%. 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 “.

STMicroelectronics collects 2.9%. The semiconductor maker reported better-than-expected second-quarter results and raised full-year 2022 expectations amid strong demand for its products.

Saint-Gobain wins 2.5%. The building materials manufacturer posted a record operating result and a double-digit margin at the end of June. At 11%, it grew by 0.3 points over the year. The building materials maker also reaffirmed its full-year outlook for an increase in operating income compared to 2021 at comparable exchange rates.

Kering occupies 1.9%. Compared to April to June, the luxury goods company reported a 12% increase in sales. However, the growth of the flagship brand Gucci is only 4% due to closures and restrictions in China.

Ipsen jumped by 14.2%. The pharmaceutical company raised its 2022 targets after posting solid half-year results.

And vice versa, score a 13.4% drop after a net loss of 239 million euros in the first half compared to 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.

Airbus flounder 5.4%. 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.

according to down 7% despite announcing sharp second-quarter earnings growth. But annual forecasts are taken into account” dull analysts

orange decreased by 3.2%. The incumbent confirmed that it aims to grow adjusted adjusted Ebitdaal (Ebitdaal) by 2.5% to 3% year-on-year by 2022, while this figure rose marginally in the first half of the year.

TotalEnergies loses 3.4%. The oil group announced a new share buyback program after posting a jump in its results for the second quarter of 2022, again boosted by a sharp rise in hydrocarbon prices amid the war in Ukraine.

Crossing yield 3.2%. The distributor said it is accelerating cost-cutting measures this year after a drop in adjusted net profit in the first half. Accounts are ” dull with operating profit at the bottom of an already lowered forecast range, knocked down by Europe, analysts at JPMorgan summarize.