TotalEnergies and Banks, Fuel Sources for Cac 40, Market News

After a 2% jump on Friday Bedroom 40, continuing its momentum, gained 0.93%, finishing at 6,091.91 points, and the volume of trades back in the summer amounted to 2.4 billion euros. The Paris index rose on reports that China is putting pressure on banks to help finance the country’s biggest developers. It also benefited from the increase TotalEnergies (+2.34%) and a bank branch. As for the oil company, it benefited from the global rise in energy prices, both for black gold (a barrel of Brent from the North Sea rose 4.4% to $105.45) and for gas amid record heat in Europe and intense growth. use of air conditioning systems. In second place are their counterparts Bank of America and Goldman Sachs, which have just published their results as of June 30.

The scenario for banks is now familiar: retail banking benefits from rising interest margins, but new mortgage lending shrinks due to rising interest rates and the risk of a recession, while market volatility and geopolitical tensions weigh on M&A and investment banking while encouraging trading activity . Bank of America (+0.6%) and Goldman Sachs (+2.8%) fits perfectly into this scheme. But it is interesting how different people prepare for the crisis. While JPMorgan Chase, Wells Fargo and Goldman Sachs increased their loan loss provisions by $428 million, $235 million and $667 million, respectively, during the quarter, Bank of America, the second-largest U.S. bank by assets, released $48 million in provisions compared to $2.2 billion a year earlier. The rest of the week will shed more light on US groups’ strategies in the face of looming economic turbulence. A total of 75 S&P 500 companies will be open until Friday. closer to us Alstom will open the ball tomorrow with the publication of its orders and sales for the first quarter of 2022-2023.

The railway equipment manufacturer will follow Publicis and Thales, Thursday The penultimate class of the week will be full. On this day, operators will monitor the return to operation of the Nord Stream-1 gas pipeline, which was stopped for maintenance since July 11. Several European officials fear that Moscow will use gas weapons as a means of pressure in the face of sanctions related to the war in Ukraine. It is necessary” be prepared for a scenario where we have to completely do without Russian gas “, warned the head of the French state, Emmanuel Macron, during his speech on July 14.

Will the ECB become stronger?

The cut would be another thorn in the side of the European Central Bank, which is due to decide on monetary policy on Thursday at 2:15 p.m. The institution has prepared the market for a 25 basis point hike in key rates, the first in eleven years, but shouldn’t it hit harder? ” Having normalized its monetary policy very late, the ECB cannot wait any longer. Christine Lagarde, its president, is expected to adopt a hawkish tone and finally take action by raising rates by 50 basis points, against the 25 basis points expected by markets.says Frank Dixmeier, Global IT Director of Fixed Income at AllianzGI. It is really hard to imagine spending the summer with negative indicators, when inflation in the Eurozone continues to grow: in May it was 8.6%, and the peak is still ahead. The fall of the euro against the dollar, which increases the prices of raw materials, is an additional argument for the Central Bank to demonstrate its determination. The ECB will also have to outline its anti-fragmentation tool, which is to support peripheral bonds, including Italian bonds, while Council President Mario Draghi is due to address parliament on Wednesday after being denied his resignation. president of Italy.

On the other side of the Atlantic, the market expects a “limited” rate hike by the US Federal Reserve to 75 basis points next week. That de-escalation of expectations, which stood at 100 basis points last Thursday, is largely fueled by comments from Governor Christopher Waller and St. Louis Fed President James Bullard, who are seen as the most hawkish members of the monetary policy committee and are pushing for a ¾ percentage point increase in the funds rate.

Solvay sees above

Among other values, Solvay rose by 4.54%. The chemicals group plans to raise its 2022 forecast after results that significantly beat expectations in the second quarter.

Cable manufacturer Nexans rose 1.83% with Societe Generale upgrading its opinion from “hold” to “buy”.

Finally, the association of shareholders of employees and former employeesEDF announced his intention “to file a criminal case with the creation of a civil party” against the state for ” business distress The stock remains suspended for trading at a recent price of 10.22 euros until further notice, and the state will announce its intentions to nationalize the electrician no later than Tuesday.