Small rise in Cac 40 after ECB, which was more offensive than expected Market News

There wasn’t really any suspense. To curb galloping inflation, the European Central Bank (ECB), following its American, British and Canadian counterparts, raised key rates on Thursday for the first time in eleven years. And even 22 years later, if we consider that the monetary institution opted for a higher-than-expected 50 basis point hike, rather than the 25 basis points the market had predicted. ” The Board of Governors considers it appropriate to take the first step towards the normalization of the interest rate, as indicated at the previous meeting “, the monetary institution justified in its press release published at 2:15 p.m. From now on, from July 27, the interest rates on the main refinancing operations, the marginal credit line and the deposit line will be increased to 0.50%, 0.75% and 0.00%, respectively.

This tightening hardly rattled the market, which took it as a sign that a compromise had been found on a tool designed to combat the risk of fragmentation of funding conditions in the euro zone. ” The Board of Governors has approved the creation of a new transmission protection tool (IPT), indeed indicated by the ECB in its press release. This is good news at a time when Italy, the eurozone’s third-largest economy, has once again been gripped by political instability following the resignation of Council President Mario Draghi. However, the latter will remain in office until the October elections to speed up current affairs. ” The IPT was adopted unanimously ECB president Christine Lagarde said this. This is a necessary condition for its success. Purchases made under the TPI will be unlimited (which is attractive to markets) and will be made in the event of “ unwanted and disorderly market dynamics “. “ The question of what exactly this means remains open, said Paul Diggle, chief economist, forecasting and analysis at abrdn. For example, is the recent widening of spreads in Italy around the collapse of the Draghi government undesirable and chaotic or a fair reflection of heightened risks? » In Italy, the main index of the Milan Stock Exchange FTSE Ebseverely pared its losses to end down 0.95%, off -2.92% at the day’s low, but in the bond market the 10-year widened its spread to 248.1 basis points with the German Bund of the same maturity before return to 236 at the end of the session.

in Paris, Bedroom 40 hesitated, closing with a slight increase of 0.27%, to 6,201.11 points, with a trading volume of 3.25 billion euros. Investors are interested in the continuation and timing of the next rate hikes. When asked about this topic, Christine Lagarde replied that ” given today’s decision […] forward-looking guidance for September no longer applies. Everything will depend on the following economic indicators. In the foreign exchange market, the euro peaked at 1.0278 per dollar before falling back to 1.0186.

Publicis and Ipsos are surrounded

On the value side, Publicis led the Cac 40 with growth of 5.05%. In the second quarter, the advertising heavyweight clearly exceeded the expectations of financial analysts, providing organic growth by 10.3%. A rising dollar remains favorable for the group, which raised its forecasts for the year. It now targets organic growth of 6% to 7%, up from a previous range of 4%-5%, and an operating margin of 17.5%-18%, up from around 17.5% previously.

Taking advantage of the favorable context for research and opinion polls, Ipsos said it is confident in its ability to post organic growth of more than 5% this year and achieve an operating margin level comparable to last year’s level of 12.9%. The name gained 4.08% on the stock market. Supplier for the biopharmaceutical industry Sartorius Stedim also rose (+8.27%) after updating its annual targets.

Seb, that’s less good

And vice versa, self drank the cup, falling 10.18% to the last position in SRD. The small appliances group has revised its full-year forecast after posting lower-than-expected half-year results. The group is affected by the slowdown in consumption in Europe amid problems related to purchasing power.

Also misbehaved, biotechnology Valneva fell 4.27% after the European Commission placed a small order for just 1.25 million doses of its Covid vaccine.