(BFM Bourse) – The Paris Stock Exchange ends up 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 warmly appreciated.
Nancy Pelosi has not lingered in Taiwan, keeping away for the moment a possible flare-up of tensions between Beijing and Washington. The departure from the island of the representative of the American deputies gave wings to the stock market indices including the CAC 40 which closed up 0.97% at 6,472.06 points on Wednesday evening.
On Wall Street, the American place is also relieved of Nancy Pelosi’s whirlwind trip. At the close of the European stock markets, the Dow Jones rose by 0.9% while the Nasdaq jumped by 2%, supported by company publications including that of PayPal (+10.5%) which was unanimous with profits that exceeded expectations.
The rise of the American rating is also to be credited with an acceleration in July, of the growth of the activity of the service sector in the United States, according to the monthly survey of the Institute for Supply Management (ISM ). The statistics are all the more watched since services represent more than two-thirds of American economic activity. The dynamism of services in the United States contrasts with the situation in the zone euro. Earlier in the day, investors learned of a slowdown in service activity on the Old Continent due to lower consumer spending, linked to rising prices.
Fed determined to raise rates
Inflation, which always fuels stock market debates, as its repercussions on the economic sphere are feared. On this subject, investors dissect the latest statements from certain members of the Federal Reserve, whose content pleads for an aggressive monetary policy if inflation does not subside. St. Louis Fed President James Bullard said he was determined to raise interest rates to bring inflation back towards the 2% target. The president of the antenna of the Fed of San Francisco Mary Daly, for her part, added that the Fed “was far from being finished” with the fight against inflation. Central banks are indeed continuing to normalize their monetary policy in order to fight against soaring prices. The Bank of England is also expected to raise its key rate by 0.50 percentage point on Thursday to 1.75%, according to a recent survey by Reuters.
Still on the macroeconomic chapter, the OPEC+ oil-producing countries have just announced an anecdotal opening of their black gold taps. The members of the enlarged cartel have thus agreed to increase production by 100,000 barrels per day for the month of September. This is much less than the additional 648,000 barrels set for the months of July and August. Oil prices jumped immediately after the announcement before turning lower as crude inventories surged by a surprise 4.5 million barrels compared to forecasts for a drop of 1.5 million. . Brent yielded 2.3% to 98.21 dollars and WTI lost 1.8% to 92.43 dollars.
Banks provide
Axa finished at the top of the CAC 40 (+5.7%) after publishing half-year net profit above expectations and announcing the launch of a new share buyback program for a maximum amount of 1 billion euros. Societe Generale gained 3.1% for its part after reporting a quarterly loss lower than feared by the market.
On the other hand, Veolia lost 2.8%, the group specializing in water and waste treatment published a net profit down 22% to 236 million euros in the first half, mainly due to construction costs. acquisition of Suez and an impairment of activities in Russia. The annual objectives are confirmed.
Renault closes down 1%, weighed down by BMW. The premium automaker is lowering its production forecast for the current year.
On the Parisian SRD, it was Bic who signed a very good performance on Wednesday (+4.7%) after a first half that exceeded expectations.
SMCP for its part gained 6.5% in the wake of a quality half-yearly publication. The group confirms its annual objectives for the current financial year after record sales on June 30.
Sabrina Sadgui – ©2022 BFM Bourse
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