Paris: down slightly, busy session in perspective – 2022-10-27 at 10:41
(CercleFinance.com) – After three consecutive rising sessions, the Paris stock exchange paused and dropped nearly 0.5%, around 6245 points, at the start of a session that promises to be busy, between results quarterly reports, Fed monetary policy decision and US growth figures.
All eyes will turn to Frankfurt around noon, where ECB officials are expected – according to observers – to announce another 75 basis point rate hike.
The ECB’s press release will be followed, at the very start of the afternoon, by the press conference of its President Christine Lagarde, who should reaffirm that inflation remains far too high and that further rate hikes will be necessary during the future meetings.
The Governing Council of the ECB comes amid a dramatic easing of rates, which is inspired by hopes that the major central banks will soften their anti-inflation and pro-recession rhetoric.
In the United States, the yield on ten-year US Treasury bonds is currently at its lowest for more than a week, at 4.01%. Its German equivalent also relaxes, around 2.11%.
Another major event of the day, the publication at 2:30 p.m. of the first estimate of the gross domestic product of the United States for the third quarter will be closely watched by investors.
After two quarters of negative growth, economists expect a rebound in activity of 2.3% at an annualized rate, thanks to the good performance of the services sector.
While waiting for these two decisive meetings, the session will be animated by a new burst of results publications, this day promises to be one of the busiest – if not the busiest – of the season.
In securities news, Capgemini announces that it achieved sales of 5.55 billion euros in the third quarter of 2022, up 22% at current exchange rates and 15.7% at constant exchange rates , compared to the same quarter last year.
Schneider Electric posted revenue of 8.8 billion euros for the third quarter of 2022, up 12% organically, with similar increases for its two branches, energy management and industrial automation.
TotalEnergies on Thursday published sharply higher results for the third quarter, still driven by the rise in crude prices. The oil group saw its adjusted net income more than double, to $9.9 billion. After taking into account a new provision of 3.1 billion dollars on Russia, the net profit ‘IFRS’ amounts to 6.6 billion dollars.
Group revenue rose sharply (+77.3%) to €101,526 million over the first 9 months compared to the first nine months of 2021. ‘ It reflects the sharp rise in prices across all wholesale markets which have an impact on the selling prices as well as on the resale of the purchase obligations in France ‘indicates the group.
Casino unveils third-quarter 2022 revenue of 8.55 billion euros, up 10.6% as reported and 5.4% like-for-like, the difference mainly due to a change impact of +6.9%.
STMicroelectronics unveils for the third quarter of 2022 a net result more than doubled in annual comparison, to 1.1 billion dollars, and an operating margin of 29.4%, against 18.9% a year earlier.
Finally, Eiffage announces that it has reached an agreement to acquire, from TCI Fund Management, a block of 13.71% of the capital of Getlink, which will bring its stake to 18.79% and will therefore make Eiffage the first shareholder of the Channel Tunnel operator.