(BFM Bourse) – The Paris Stock Exchange closes this last session of the week up 0.9%. On Wall Street, the mood is down after a spectacular rebound in the major US indices. The results of the major US banks were mixed. On a weekly basis, the CAC 40 it is, however, gaining more than 1%.
Up by more than 2% at the beginning of the afternoon on 6000 points, the Parisian market has lost ground in the wake of the decline of the New York Stock Exchange. According to the latest consumer confidence index from the University of Michigan, investors are digesting the results of major US banks that were considered to be at odds with the rising component of inflation expectations.
the CAC 40 closed the last session of the week with an advantage of 0.9% at 5,931.92 points despite the slack observed at the end of the day. On a weekly basis, the Parisian rating barometer registers an increase of 1.08% after rising 1.8% last week.
On Wall Street, the time is with soup with a grimace and shortly after a spectacular flip of the indexes. At the close of the European stock exchanges, the Dow Jones lost 0.5% while the S&P and Nasdaq fell by more than 1% for their part.
While Citigroup, JPMorgan and Wells Fargo did better than expected, Morgan Stanley for its part lacked market consensus. The revenues of its investment banking division fell sharply in a year due to an unfavorable climate on the financial markets. Major US banks also warned of increased economic risks and took steps to deal with any outstanding payments from their customers accordingly.
As for consumers, investors took note of retail sales which were flat month after month in September. Economists had expected a slight increase in this indicator. As for American household morale, it improved more than expected in October, according to early data from the University of Michigan monthly survey. The confidence index rose to 59.8 after 58.6 in September. Supervised by the Fed, the one-year inflation expectations component rose to 5.1% after 4.7% in October, where markets expected a slowdown to 5.1%.
This new information will give the Fed one more reason not to slow down in its fight against inflation it cannot control. US inflation data, released the day before, emerged above market expectations. Enough to reduce hopes of a change in the Fed’s guideline to near zero. Markets have already priced two 0.75 percentage point hikes in the Fed’s key rate by the end of the year.
The season of results across the Atlantic will therefore be an opportunity for markets to assess the consequences of inflation and the tightening of monetary policy on corporate profits.
Total fit, even FDJ
On the side of value, Total Energies ends with 1.75%. The oil group expects a sharp improvement in the performance of its LNG assets. Another supporting factor, Barclays renewed its recommendation to overweight the file.
Danone gained 0.6%. The French agri-food giant announced on Friday its intention to withdraw from most of its operations in Russia.
Thermador leaps by 7%, the specialist in the distribution of materials for the circulation of fluids in construction and industry has presented a quarterly publication of quality, with a turnover of 130.16 million euros, up 14.1% compared to the previous three months.
Sabrina Sadgui – © 2022 BFM Borsa