(Boursier.com) – The Paris market reopened this week, dropping 2.17% weekly to 6,077 points on Friday night. Risk aversion escalated again after stronger-than-expected US inflation was announced in August. The lack of new signs of a slowdown in consumer prices in the world’s largest economy calls into question the most flexible scenario for rates and growth. The market is now widely expecting the Fed to make his 75 basis point rate hike next Wednesday, but a 100 point rate hike has not been ruled out of the discussion so far.
Moreover, the International Monetary Fund and the World Bank, two of the world’s largest institutions, said Thursday night that they expected an economic slowdown in the third quarter of next year and the risk of a global recession rising, respectively. . On Friday, a warning from FedEx, the logistics and parcel delivery giant considered a reliable barometer of global economic activity, added to the surrounding gloom.
In Europe, after the ECB’s historic 75 basis points tightening last week, comments from several members of the European Central Bank point to further significant monetary tightening next month. For example, ECB Deputy Governor Luis de Guindos said on Friday that a slowing economy and the possibility of a recession in the eurozone would not be enough to achieve inflation, so Frankfurt institutions should continue to raise interest rates. Declared. Control.
In this context, bond yields have risen sharply recently, such as the yield on the two-year German bund, which has peaked at 1.594% since 2011. And the dollar continued to use its safe-haven status to gain even more dominance against the world’s major currencies. The euro is approaching parity this Friday night.
On the commodity front, a barrel of crude fell slightly further over the course of the week ($86 WTI), approaching early-year levels. Prices continue to be weighed down by fears that a slowing economy, or even a recession, will weaken demand. An ounce of gold is trading at around $1,675 while Bitcoin moves close to $19,700 on Coindesk.
in business news Orpea The stock market has experienced another dark week as animal health research institutes Virbac and Betoquinol have been punished following the latest results.
* Renault about 9% increase in Stellantis (+0.8%). Improving the European car market. New car registrations in the European Union fell by 10.4% again in July, despite an already weak comparative base due to persistent semiconductor shortages, but the European new car market returned to growth in August. (+4.4%), ending the 13th consecutive month. of decline. However, with 650,305 vehicles registered, the result is well below pre-pandemic levels, the European Association of Automobile Manufacturers notes. All major EU markets contributed positively to growth in the region, with strong growth in Italy (+9.9%), Spain (+9.1%), France (+3.8%) and Germany (+3.0%) Did. At builder level, Stellantis (+10.6%) is Renault (-6.99%) in the EU.
* marshalis Up 4.9%. Real estate dedicated to shopping centers was particularly supported by a memorandum from Oddo BHF, which was brought up to “outperform” opinion on the file with targets adjusted from 9.8 to 102 euros. Analysts, after meetings with management, believe that while leaders, like many other companies, approach this return by emphasizing a lack of visibility into the specific impact of inflationary conditions, Marshalis believes this He also said he is confident in his ability to navigate potentially difficult times. .
* euroapi It costs 4.2%. In May, the active pharmaceutical ingredients expert, who was listed on the stock market at a price of 12 euros, benefited from the backing of Deutsche Bank on behalf of health manufacturers. purchase’. Following the better-than-expected half-year results, the investment has moved further up the bank’s priority list as it offers several features that should make it very attractive to investors.
* technip energies A 3.6% advance, also boosted by analyst notes. During the “acquisition”, Citi actually revalued the title of the Engineering and Technology Group from €15.50 to €17.00. The bank believes the company has “abundant opportunities” to fill its backlog after removing the Russian Arctic LNG-2 project from its portfolio. In particular, he sees great opportunities in his LNG in the United States and the Middle East. As for the stock, it’s about 20% below its all-time high, leaving the company at a bargain compared to its European peers.
vice versa, Orpea A 32% drop, the lowest level since June 2005. The nursing home and long-term care specialist company was again strongly shaken this week after announcing lower first-half profitability, warning that profitability could worsen in the second half. increased by 10.9% to 2,295 million euros in the first half of the year, the EBITDAR margin fell to 18.5% (24.9% a year ago). CFO Laurent Lemaire said in a conference call with senior journalists, “For reasons of transparency, Orpea expects 2022 results to be significantly below market expectations. Decided to accelerate the release of its preliminary results.Operating margins will be impacted by reduced compensation mechanisms related to Covid-19 and higher food, energy and salary prices. In between, SocGen lowered its target from 36.5 euros to 18.5 euros, maintaining its ‘pending’ opinion. Oddo BHF (“Neutral”) believes stocks are still surrounded by too much uncertainty, or at least many short-term brakes (inflation, TO, shortages, regulatory changes, pricing). , limiting the visibility of the predicted sequence… .
* Villback 17.4% lower. However, the Institute of Veterinary Medicine announced positive half-year results and confirmed its 2022 target. Approximately 30 ME, excluding dividends for 60 ME). For activity growth, inflation, and managerial decision-making. On the other hand, the ratio of ‘recurring operating income before amortization of assets associated with acquisitions’ to ‘earnings’ repeated the impact of inflation and organic growth guidance (5% and 10%).
* Athos 11.1% decrease. Sicomoa Asset Management, which owns a minority stake in the group formerly led by Thierry Breton, is calling for the resignation of chairman Bertrand Meunier. Cyril Charlotte, a founding partner of the management firm, also told Reuters on Friday that he asked an expert in the field to replace the oldest member of the board. Sycomore AM decides that the Atos split project is ‘too ambitious and too complex’…
* Dassault Systèmes stumble 8.6% world line (-8.4%) and capgemini (-7.3%). Like major U.S. tech stocks, tech stocks have been neglected against the backdrop of soaring bond rates.
* Air France-KLM A 9% drop, particularly affected by Friday’s air traffic controllers’ strike. The Directorate General of Civil Aviation (DGAC) has urged airlines to cut flight schedules by 50% on this day, but Air France has reduced its flight schedules by about 90% on long-haul flights and his 45% on short- and medium-haul flights. was scheduled to operate. .