Uncertain start to August for Cac 40, focus on production activities, morning meeting

After signing its best monthly performance since November 2020, the Paris stock exchange should start August on a mixed note in response to mixed PMIs in China, but reflecting a slowdown. Monday’s release of PMI and ISM manufacturing activity in Europe and the United States should provide a broader picture of recent economic developments. From the good news, according to the Turkish Ministry of Defense, the first batch of grain from Ukraine was supposed to leave the Odesa port this morning.

Financial markets reacted positively to stronger-than-expected euro zone GDP growth in the second quarter, as well as a sense that the US Federal Reserve may reduce the extent of its next tightening of monetary policy.

Optimistic interpretation

This interpretation of the future evolution of the US central bank’s monetary policy is considered by economists to be optimistic, to say the least, especially after Neil Kashkari, president of the Minneapolis Fed, confirmed on Sunday that the main goal of the Federal Reserve is to reduce inflation. returned to 2%, while his counterpart at the Atlanta Fed, Rafael Bostic, said shortly before that there was more to be done in terms of monetary tightening.

Jonas Holtermann, market economist at Capital Economics, said he was surprised by the “dovish” market reaction to the Fed’s 75 basis point rate hike last week. ” In our view, the recovery in risk appetite in response to the Fed is largely due to a combination of wishful thinking and tight positionshe explains, adding that according to US, There is nothing in Jerome Powell’s comments to suggest that monetary policy officials will hold back on aggressive rate hikes as inflation remains well above target “.

HSBC is raising the bar on profitability

The week ahead will be buoyed by monetary decisions from the Bank of Australia and the Bank of England, the OPEC meeting to decide on output growth in September, and the employment report in July. in the United States.

Company releases will also continue with around 170 S&P 500 companies including Capterpillar, AMD, Starbucks and Uber, not to mention Europe’s BP, Merck, BMW, Infineon, Bayer, Beiersdorf, Lufthansa and Asia’s Alibaba and Nintendo. In France, the five Cac 40 components will publish their quarterly reports.

The banking sector should be watched after better-than-expected quarterly results from Sino-UK companies HSBC, which has benefited from rising interest rates and has pledged to return its dividend to pre-healthcare crisis levels as soon as possible. The leading European bank also raised its profit forecasts, counting on revenue growth.

Vinci. Grupo Aeroportuario del Centro Norte (OMA) has announced that it has received a letter from investment fund Fintech Advisory regarding the indirect sale of 29.9% of the capital of the Mexican airport group to its subsidiary Vinci Airports for a total of $815.4 million (€797.3 million).

Bollore published sharply improved results for the first half of the year, which was confirmed, in particular, by good indicators of transport and logistics activities.

Ipsen and Marengo Therapeutics announced that they have entered into a strategic partnership to develop two clinical-stage precision immuno-oncology treatment candidates.