Cac 40: Nancy Pelosi’s departure from Taiwan gives wings to the Paris Stock Exchange

(BFM Bourse) – The Paris Bourse ended almost 1%, galvanized by the departure of Nancy Pelosi from the island of Taiwan. Corporate publications also support the trend. In Paris, the results of Societe Generale, Axa or Bic were praised, while on Wall Street, the quarterly performance of PayPal was warmly appreciated.

Nancy Pelosi did not stay long in Taiwan, avoiding a possible flare-up of tensions between Beijing and Washington. The departure from the island of the representative of the American representatives gave wings to the stock market indices including the CAC 40 which closed by 0.97% at 6,472.06 points on Wednesday night.

On Wall Street, the American area was also comforted by the trip of Nancy Pelosi. At the close of the European stock markets, the Dow Jones rose by 0.9% while the Nasdaq jumped by 2%, supported by company publications including PayPal (+10.5%) which united in profits that exceeded expectations.

The increase in the American rating is also the credit of an acceleration in July, in the development of the activity of the service sector in the United States, according to the monthly survey of the Institute for Supply Management (ISM). The statistics are closely watched because services represent more than two-thirds of American economic activity. The dynamics of services in the United States is different from the situation in the euro zone. Earlier in the day, investors noted a slowdown in service activity in the Old Continent due to a decrease in consumer spending, linked to rising prices.

The Fed is determined to raise rates

Inflation, which always highlights the debates in the stock market, because its effects on the economy are feared. In this topic, investors dissected the latest statements from some members of the Federal Reserve, whose content pleaded for an aggressive monetary policy if inflation does not decrease. St. Louis Fed President James Bullard said he is determined to raise interest rates to bring inflation back to the 2% target. The president of the Fed’s antenna in San Francisco, Mary Daly, for her part, added that the Fed is “not done yet” in the fight against inflation. Central banks actually continue to normalize their monetary policy to combat rising prices. The Bank of England is also expected to raise its key rate by 0.50 percentage points on Thursday to 1.75%, according to a recent Reuters survey.

In the macroeconomic chapter, the OPEC+ oil-producing countries recently announced the anecdotal opening of their black gold taps. Members of the enlarged cartel agreed to increase production by 100,000 barrels per day for the month of September. This is lower than the additional 648,000 barrels set for the months of July and August. Oil prices jumped immediately after the announcement before falling as crude inventories rose to a surprise 4.5 million barrels compared to forecasts of a decline of 1.5 million. . Brent gained 2.3% to 98.21 dollars and WTI lost 1.8% to 92.43 dollars.

Banks provide

Axa finished on top of the CAC 40 (+5.7%) after publishing a half-year net profit above expectations and announcing the launch of a new share buyback program for a maximum amount of 1 billion of euros. Societe Generale gained 3.1% in its shares after reporting a quarterly loss that was lower than the market had feared.

On the other hand, Veolia lost 2.8%, the group specializing in water and waste treatment posted a net profit down 22% to 236 million euros in the first half, mainly due to costs to build. . Confirmed annual goals.

Renault closed up 1%, weighed down by BMW. The premium automaker lowered its production forecast for the current year.

In the Parisian SRD, Bic signed an excellent performance on Wednesday (+4.7%) after a first half that exceeded expectations.

SMCP for its part gained 6.5% after a quality half year publication. The group confirmed its annual targets for the current financial year after record sales on June 30.

Sabrina Sadgui – ©2022 BFM Bourse

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