logical profit-taking on the CAC 40
THE TREND
The euphoria which won the Paris market yesterday (+4.24%) and allowed it to easily cross 6,000 points, gives way to profit taking this morning. Somewhat logical after such a surge! Investors clearly need to take a breather and the CAC 40 fell 0.50% to 6,010 points shortly before 9:30 a.m. after a short passage below the symbolic level of 6,000 points, at 5,993.87 points.
This slight decline does not call into question the hope of a lull in the rate hikes of the major central banks, born yesterday… Operators are regaining faith in the famous theory of the “pivot of the Fed”: The rise in yesterday accelerated on the back of US jobs figures that fell far short of market expectations. However, the Fed had so far rejected the idea of a regression, despite the decline in US activity for two quarters.
She underlined the parallel good performance of the labor market… This argument therefore no longer seems valid now, the impact of the economic slowdown being felt on the job market. Responsible operators therefore believe that such a context should curb the enthusiasm of the Fed, which could consequently modify the ongoing process of monetary tightening.
WALL STREET
Wall Street continued its rally from the day before on Tuesday, the S&P 500 soaring by 3.06% to 3,790 pts, the Dow Jones by 2.80% to 30,316 pts and the Nasdaq by 3.34% to 11,176 pts in fencing. On Monday, the historical DJIA index had already ignited by 2.66% and the Nasdaq by 2.27%, despite concerns about the financial health of Credit Suisse which have now clearly calmed down…
ECO AND CURRENCIES
France :
– French industrial production. (08:45)
– Markit final French PMI index for services. (09:50)
UNITED STATES :
– ADP report on US private employment. (2:15 p.m.)
– US trade balance. (2:30 p.m.)
– US final PMI services index. (3:45 p.m.)
– US final composite PMI index. (3:45 p.m.)
– ISM US services index. (4:00 p.m.)
Europe :
– German trade balance. (08:00)
– Markit Spanish final PMI services index. (09:15)
– Markit Italian final PMI for services. (09:45)
– Markit final German services PMI index. (09:55)
– Markit final European PMI index for services. (10:00 a.m.)
– Final composite European Markit PMI index. (10:00 a.m.)
– Final CIPS UK Services PMI. (10:30 a.m.)
– Italian GDP of the second quarter (final). (11:00)
The euro/dollar parity reached $0.9966 this morning. A barrel of Brent is trading at $91.67. An ounce of gold is traded at $1,719.
RISING VALUES
STMicroelectronics (+0.15% to 34.53 Euros) is building an integrated silicon carbide (SiC) substrate manufacturing unit in Italy in order to meet the growing demand for SiC components from its customers for applications in the sectors automotive and industrial as part of the transition to electrification and the pursuit of increased energy efficiency. Production is expected to start in 2023, balancing the supply of SiC substrates between in-house manufacturing and purchasing from suppliers. The investment of 730 million euros over five years will benefit from the financial support of the Italian State as part of the national recovery and resilience plan and approximately 700 additional direct jobs will be created when the unit is at full capacity.
FALLING VALUES
Engie (-0.30% to 12.28 Euros) returns to the finalization of the sale of Equans to the Bouygues group. Energy specifies that this operation allows Engie to reduce its net debt by around 7.1 billion euros. Catherine MacGregor, Chief Executive Officer of Engie, said: “On behalf of the Group, I would like to thank Jérôme Stubler and all the Equans teams, to whom I wish great success within the Bouygues group. The completion of this sale is a major step in the refocusing of Engie, and allows the Group to invest in the growth of its key businesses to continue to accelerate the energy transition”.
Bouygues (-1.25% to 27.32 euros) finalized, on October 4, the acquisition of Equans and reached a key stage in its development. The final acquisition price for Equans shares was €6.1 billion. After taking account of Equans’ net debt on the day of acquisition, the impact on Bouygues’ net debt is €6.5 billion, including €130 million paid to Engie on May 12, 2022 on the signature of the acquisition contract.
THEY PUBLISHED THEIR TURNOVER/RESULTS…
Audacia, Osmozis, SpineGuard, Fill Up Media, Bilendi
THE LATEST “RECOS” FROM ANALYSTS…
Goldman Sachs is buying Sanofi with an adjustment target of 130 to 128 euros.
AlphaValue goes back from buying to ‘accumulating’ on Kering, targeting a price of 597 euros.
Stifel is buying on SII, targeting a price of 60 euros.
HSBC retains Credit Suisse with an adjusted target of CHF 6.20 to CHF 4.90.
MARKET INFORMATION
EDF: the State submits its takeover offer at 12 euros per share.
UMHS: change of control; pending buyout and delisting offer.
Alan Allman Associates: small reserved capital increase.
Vergnet will consolidate its shares.
IN SHORT
Holcim completes the acquisition of Izolbet.
Hoffmann Green: contract with 3-year volume commitment with OTE
GTT: new order from Hyundai Heavy Industries.
Mersen: inauguration of the new Cheonan plant in South Korea.
BOA Concept: RobOptic review price.
UV Germi signs a contract with Veolia.