Cac 40 assured by a less “hawkish” Powell, place for quarterly results, morning meeting

The prospect of a small scale next rate hike by the American Federal Reserve boosted the American markets, and especially the Nasdaq Composite (+4%), dragging the Asian markets in their wake. The European markets should follow, without departing from a certain precaution. Meta Platforms, parent company of Facebook, was really disappointed by announcing the first quarterly decrease in its turnover in its history. The contracts in the future in the US indices also lost ground this morning. Apple and Amazon will reveal their quarterly earnings after Wall Street closes.

The Fed, as expected, raised its main key rate by 75 basis points for the second consecutive period, bringing it within a range of 2.25%-2.5%. Its president, Jerome Powell, showed determination to fight inflation during his press conference, while trying to ease expectations about the next monetary tightening. In particular, he showed that ” at some point it should slow down “.

The mega-rate increase behind us?

Michael Pearce, senior economist at Capital Markets, says that with ” slow inflation and the accumulation of signs of economic weakness, we suspect that those responsible [de la Fed] will be more cautious on the next rate hike, returning to a more limited tightening of 50 basis points in September “.

Same story with JPMorgan analysts, who believe that central banks should continue their monetary tightening cycle this year, but it remains to be seen ” it is more likely that the high point of the rate hike is behind us “.

Jerome Powell also signaled that the next decisions will be made on a meeting-by-meeting basis, suggesting that a less restrictive approach will depend on economic indicators. In the bond market, the yield on the 10-year US bond stabilized at 2.78%, while in the foreign exchange market the dollar fell against other currencies, especially against the yen. The euro was hovering around $1.02, after jumping 0.9% overnight.

Cascading lifts

Investors’ attention now turns to the first estimate of US GDP in the second quarter. The consensus formed by Bloomberg expects growth of 0.5% at the annualized rate, after a contraction of 1.6% earlier. To also follow, at the beginning of the afternoon, the first data on the evolution of consumer prices in July in Germany.

Total Energy announced a new share buyback program after recording a jump in its results in the second quarter of 2022, once again boosted by the sharp increase in the price of hydrocarbons against the backdrop of the war in Ukraine.

Sanofi raised its full-year business profit forecast, as sales of its star drug, Dupixent, continued to grow strongly.

Saffron raised its cash and revenue generation targets for 2022, after seeing results jump in the first half, thanks to the recovery of air traffic.

Schneider Electric raised its operating profit and revenue growth targets for 2022, after posting strong first-half results.

Liquid air confirmed its outlook for 2022, after seeing results improve in the first half, largely supported by rising energy prices.

Stelantis announces new record results, the margins achieved by its Jeep, Fiat and Peugeot electric vehicles that have done well in a context ” especially difficult “.

orange confirmed that it refers to a repeated adjusted gross operating surplus (Ebitdaal) of up to 2.5% to 3% as in 2022, while this indicator rose shyly in the first half.

STMicroelectronics released better-than-expected second-quarter results and raised full-year 2022 guidance amid strong demand for its products.

Airbus lowered the aircraft delivery target for 2022 and postponed the target production rate of 65 aircraft per month for the A320 family until early 2024, due to difficulties encountered in its supply chain. Airbus now expects to deliver about 700 planes this year, not 720. Other goals are on hold.

Teleperformance recorded in the second quarter a turnover close to 2 billion euros, by 4.5% on a like-for-like basis. Repeated for the strong reduction in the contribution of the Covid aid contracts, the organic growth reached 14.5%, which is fast compared to the first quarter (+11.1%). Annual forecasts confirmed.

In this house Keringsales increased by 12% on a comparable basis between April and June, but the growth of the flagship brand, Gucci, amounted to only 4%, due to the closures and confinement in China.

Crossroads confident for the second half, after a 1.6% increase in its current operating income during the first six months of the year and that raised the cost reduction target for 2022 in a context of accelerating ‘inflation. The performance recorded in Brazil, the distributor’s second market, provides strong support.

San Gobain posted a record operating result and a double-digit margin at the end of June. At 11%, it increased by 0.3 points within a year. The construction materials manufacturer also confirmed its outlook for the whole year, ie an increase in the same exchange rates of operating income compared to 2021.

Casino announced that it has reached an agreement to sell a majority stake in its subsidiary GreenYellow to private equity firm Ardian for an enterprise value of 1.4 billion euros.

Elis raised several of its financial goals for the 2022 financial year in the context of “ activity recovery, better than expected in the first half, as well [de] good price momentum “, said the company on Wednesday.


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