The rise of the Cac 40 continues, but the week promises to be delicate for the markets, Morning meeting

After a white week, the Paris stock exchange should open on a positive note after a sharp rebound on Wall Street on Friday. But the next few days promise to be difficult, as the monetary decision of the European Central Bank, which is preparing to raise interest rates by 25 basis points, is just around the corner.

Another big event in Europe is the scheduled end of repair work on the Nord Stream-1 gas pipeline on Thursday, and the question of whether the flow of gas to the Old Continent will resume remains in the background. Several European officials fear that Russian authorities will use gas weapons as a means of pressure under sanctions related to the war in Ukraine. A factor that the ECB will also have to consider.

To a “limited” strengthening of up to 75 basis points

In New York, the three major indexes rose about 2% on Friday, buoyed by sentiment that the US Federal Reserve will “limit” its next hike to 75 basis points next week. In addition, these expectations are confirmed by the article in The Wall Street Journal that the option is left to the central bank, thus agreeing with the comments of Governor Christopher Waller and St. Louis Fed President James Bullard, who are considered the most “hawkish”.

The US financial daily previously fueled the debate over possible leaks at the Federal Reserve when it predicted a 75 basis point hike in June.

Last week, a 9.1% year-on-year rise in consumer prices in the United States in June fueled fears of a sharp tightening of monetary policy by the Fed, leading to a 100 basis point increase in the Fed’s benchmark rate. However, these expectations have eased somewhat thanks, in particular, to a slowdown in inflation expectations, as reflected by the University of Michigan’s Consumer Confidence Survey.

While Friday’s bounce brought welcome relief, it doesn’t change the fact that markets have priced in the prospect of a sharp slowdown in the global economy and that the general trend remains to sell the bounce. concludes Michael Hewson, Chief Market Analyst at CMC Markets. Commodity prices fell recently, with oil prices hitting their lowest level since February amid fears of a recession.

Three Cac 40 companies are participating

The second-quarter earnings season gets its first big straight start with releases from Bank of America, Goldman Sachs and IBM on Monday, with announcements from Netflix, Tesla and Twitter expected in the coming days. In France, three Cac 40 components will meet the training from Tuesday: Alstom, Publicis and Thales.

On the foreign exchange market, the euro is trading around $1.02 after falling below parity at 0.9955 for the first time in 20 years last week.

On the cost side, Solvay plans to raise its 2022 guidance after strong results in the second quarter. The chemicals group expects sales of 3.4 to 3.5 billion euros in the second quarter, based on preliminary data, and core gross operating profit of 855 to 865 million. Quarterly reports will be published on July 28.

Stellantis will carry out an “orderly closure” of its joint venture with China’s GAC, which manufactures and sells SUVs in China.. The automotive group will recognize a non-cash impairment charge of approximately €297 million in H1 2022 results.

Airbus. A British court on Friday found the planemaker wrong on a technicality in its dispute with Qatar Airways over the security of its A350s, ruling that the group could not take advantage of a French law known as the “blocking” that prohibits the transfer of confidential information to foreigners. entities

EDF. The Association of Shareholders of Employees and Former Employees of the Group announced its intention ” file a criminal case with a civil claim “against the state for” business distress “. EDF shares remain suspended from listing until further notice, and the state will announce its intentions to nationalize the electrician no later than Tuesday.