(BFM Bourse) – The Paris Stock Exchange closed down almost 1%, galvanized by the departure of Nancy Pelosi from the island of Taiwan. Corporate publications are also supporting the trend. In Paris, it was the results of Societe Generale, Axa and Bic that were hailed, while on Wall Street, it was PayPal’s quarterly performance that was highly appreciated.
Nancy Pelosi has not stayed in Taiwan, avoiding for the moment a possible escalation of tensions between Beijing and Washington. The departure from the island of the representative of the American deputies gave wings to the stock indices, including the CAC 40, which closed 0.97% higher at 6,472.06 points on Wednesday night.
On Wall Street, the American square is also relieved of Nancy Pelosi’s whirlwind trip. At the close of the European stock markets, the Dow Jones rose 0.9% while the Nasdaq jumped 2%, supported by publications from companies such as PayPal (+10.5%) which was unanimous with earnings that exceeded expectations .
The increase in the US rating must also be attributed to an acceleration in July of the growth of activity in the services sector in the United States, according to the monthly survey by the Institute for Supply Management (ISM). Statistics are all the more closely watched as services account for more than two-thirds of US economic activity. The dynamism of services in the United States contrasts with the situation in the euro zone. Earlier in the day, investors learned of a slowdown in services activity in the Old Continent due to lower consumer spending, linked to higher prices.
Fed determined to raise rates
Inflation, which always fuels stock market debates, as its repercussions in the economic field are feared. On this subject, investors dissect the latest statements by certain members of the Federal Reserve, whose content advocates an aggressive monetary policy if inflation does not come down. St. Louis Fed President James Bullard said he was determined to raise interest rates to bring inflation back to the 2% target. San Francisco Fed Antenna President Mary Daly, for her part, added that the Fed was “far from done” with the fight against inflation. In fact, central banks continue to normalize their monetary policy to fight rising prices. The Bank of England is also expected to raise its benchmark rate by 0.50 percentage point on Thursday to 1.75%, according to a recent Reuters poll.
Still in the macroeconomic chapter, the OPEC+ oil-producing countries have just announced an anecdotal opening of their black gold taps. The members of the expanded cartel have thus agreed to increase production by 100,000 barrels per day for the month of September. This is far less than the additional 648,000 barrels forecast for the months of July and August. Oil prices jumped immediately after the announcement before falling as crude inventories unexpectedly rose 4.5 million barrels compared to forecasts for a 1.5 million drop. Brent fell 2.3% to $98.21 and WTI fell 1.8% to $92.43.
The banks provide
Axa finished at the 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 1,000 million euros. Société Générale gained 3.1% for its part after reporting a quarterly loss lower than feared by the market.
For its part, Veolia loses 2.8%, the group specializing in water and waste treatment publishes a net profit of 22% to 236 million euros in the first half, mainly due to construction costs, the acquisition of Suez and the deterioration of activities in Russia. . Annual targets confirmed.
Renault closes 1%, weighed down by BMW. The premium automaker is lowering its production forecast for the current year.
Regarding the Parisian SRD, it was Bic who put in a very good performance on Wednesday (+4.7%) after a first half that exceeded expectations.
SMCP for its part gained 6.5% after a quality semi-annual publication. The group confirms its annual objectives for this year after the record sales of last June 30.
Sabrina Sadgui – ©2022 BFM Bourse
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