This week, Cac 40 hedges against an avalanche of publications, Market News

The Paris stock exchange lost ground on Monday morning as investors limited initiatives at the start of the busiest week of the business season, especially as several leading macroeconomic indicators are also on the agenda for the coming days.

Around 9:30 in the morning at Bedroom 40 lost 0.38% to 6,192.90 points with a business volume of 220 million euros.

So volatility promises to be high as 175 S&P 500 companies, or more than a third of the total, are set to report second-quarter results this week. Gafam will feature prominently in this flood of posts, while the social network Snap’s failures have raised fears that companies dependent on online advertising revenue will suffer.

Three quarters of the Cac 40 company on the grill

Players in the auto and oil sectors will also be honored, as will companies considered barometers of the economy’s health, such as UPS, Caterpillar, Boeing and 3M. In France, the 30 components of the Cac 40 will do the same, including the largest capitalized ones of the Paris market, such as LVMH, Hermès, TotalEnergies, Sanofi, L’Oréal or even Airbus.

The economy will not surpass the GDP of the Eurozone and the United States in the second quarter, the first estimate of inflation in July within nineteen, and of course the monetary decision of the Fed on Wednesday evening, which should again choose to raise the federal funds rate by 75 basis points. According to the Atlanta Fed’s GDP Now tracker, which tracks expectations based on economic indicators, the market expects the U.S. economy to contract by 1.6% after falling by the same amount in the first quarter, which meets the definition of a recession with two consecutive quarters of contraction. However, the consensus predicts US GDP growth of 0.3%.

Faurecia and Plastic Omnium confirm

The latest private sector PMIs in Europe and the United States for the month of July reflect a contraction in activity. Thus, the German Ifo business climate index for the same month will be particularly alert in the late morning.

Faurecia occupies 0.7%. Forvia, the automotive supplier formed from the merger of the French group and Germany’s Hella, confirmed its full-year forecast, while its half-year results were hit by an inflationary environment.

His competitor Plastic Omnium was unchanged after also reaffirming its guidance for fiscal 2022 as its results beat analysts’ forecasts for the first half.

In the same sector, Valeo decreased by 1.9%, while Renault increases by 0.8%.

Eutelsat a drop of 10.8%. The satellite operator announced that it has entered into talks with its co-shareholders OneWeb with a view to a possible merger of the two companies through a share swap. Eutelsat already owns 23% of the capital of the British company, which is developing a high-speed Internet access service covering regions not served by terrestrial communications.

The greatest increase in Cac 40, orange rose in price by 1.3%. The French operator and Masmovil have announced that they have signed an agreement to combine their activities in Spain, the result of exclusive negotiations that began in this direction at the beginning of March 2022.

TotalEnergies lost 1.2% on falling oil prices, which have fallen nearly 10% since the start of the month.