The Cac 40 is falling again, Engie plunges 7% after new provisions in Belgium
Posted 20 Dec. 2022 at 11:28Updated 20 Dec. 2022 at 11:33
Exit the desire to bounce back from this Monday session… The Paris Bourse has been anchored in the red since the start of the morning, weighed down by the new decline on Wall Street, the fourth in a row, and the rallying of the Banque du Japan this morning, the last to enter the race at the end of the year, to the firmness of the major central banks.
At midday, the About 40 lost 0.65%, to 6,431.70 points, further weighed down by the fall of nearly 7% fromEngie, even if the energy company only appears in 19th place among the largest capitalizations of the flagship index, with a weight of around 33 billion euros. This morning, Engie informed the markets that it had to increase by 3.3 billion euros its provisions for its nuclear fleet in Belgium. An impact linked to the conclusions of the triennial review conducted by the country’s Nuclear Provisions Commission (CPN), explains the group. The French believe that the major part (2.9 billion) of this sum is unjustified and will submit an adjusted proposal within 60 days. Engie also indicates that the legislation adopted in several countries of the European Union to limit the inframarginal rent linked to the price of electricity would have an impact on its operating results for 2022 and 2023.
In the dark until February
In the United States, operators continue to worry about the scenario of a reduction caused by the firmness of the American Federal Reserve in terms of monetary policy. Especially since the next few days, or even the next few weeks, are empty of any leading meeting in this area.
” We would like to think that all the bad news is there, says Louis Navellier, specialist in investing in growth stocksinterviewed by CNBC. But we are sailing by sight, there are no further indications from the Fed before February. We will certainly not recover at the end of the year the losses of last week. For Lawrence Gillum, Compulsory Strategist at LPL Financial, “ the good news is that we are now close to the end of these rate hike cycles, which may mitigate the headwinds we have seen in global financial markets this year “.
Earlier than expected for the BoJ
It won’t be for now, at least not in Asia. In Tokyo, the Nikki 225 ended down sharply by nearly 2.5%, in reaction to the Bank of Japan’s surprise decision to adjust its monetary instruments by widening the fluctuation range it tolerates on government bond yields to ten respond. Yields on ten-year government bonds will now be allowed to fluctuate 50 basis points in either direction from the 0% target, down from 25 basis points previously.
“ They widened the margin and I think it came sooner than expecteddecrypts Moh Siong Sim, strategist at Bank of Singapore, according to proposals relayed by the Reuters agency. Whether this is a harbinger of what is to come in terms of monetary normalization remains to be seen. Perhaps the message is that the sharp drop in the yen we saw earlier was disturbing for policymakers. »
Derichebourg soon at 48.4% at Elior’s table
Lots of food for thought, therefore, for investors, who will not have much to eat statistically on Tuesday. After producer prices (good surprise, with an increase of 28.2% over one year for November, against 31.1% expected and 34.5% in October), we are only monitoring the figures for consumer confidence. consumer in the euro zone for December and housing starts and building permits for November in the United States.
In the rest of the securities news, Elior (+7%) announced, as expected, a project to acquire the Multiservices branch of Derichebourg (-1.8%) as part of a transaction fully remunerated in new shares. At the end of this operation, the metal recovery group will hold 48.4% of the restaurant owner’s capital. Daniel Derichebourg will be appointed CEO of Elior for a four-year term and will step down from his operational duties while remaining Chairman.