The Paris Bourse is trying to preserve the balance, with forecasts from Apple and Amazon suggesting that the tensions on supplies will continue, thus compromising the crucial holiday season, especially as inflation is not known. no respite. Consumer prices have indeed increased by 4.1% over one year in October in the euro zone, their largest increase since July 2008, inflated in particular by the 23.5% jump in energy prices. Heavyweight of the Cac 40, TotalEnergies takes 0.6%.
On the other hand, growth stabilized at 2.2% in the region in the third quarter and posted an increase of 3.7% over one year, against 3.5% expected. However, it should slow down markedly at the end of the year as ” disruptions in supply chains, weakening global demand and some labor shortages hamper production “, Warns Andrew Kenningham, chief economist Europe at Capital Economics.
Inflation at a 30-year peak in the United States
Across the Atlantic, household income fell 1% in September and spending rose 0.6%, where the market expected the former to contract 0.3% and increase 0.6%. seconds. The core PCE index of personal consumption expenditure, the Fed’s preferred measure of inflation, rose 0.2% on a month-on-month basis and 3.6% on a year-on-year in September, thus maintaining its high level since 1991. The Federal Reserve’s monetary policy committee will meet next Tuesday and Wednesday. It should also be noted that the labor cost index increased by 1.3% in the third quarter while the consensus was counting on an acceleration limited to 0.9% after + 0.7% in the second quarter. .
At 4:20 p.m., the 40 is almost stable at 6,799.84 points (-0.06%) and posted a gain of 4.38% in October, its best monthly performance since March, in a business volume of 1.85 billion euros. TO New York, the Dow Jones is stable, while the Nasdaq Composite yields 0.54% after its record on Thursday.
Apple dethroned by Microsoft
Tech stocks’ Stoxx 600 bends 0.8% in Europe, starting with Apple suppliers like STMicroelectronics, which lost 2.1%. Apple fell 3.9% in New York, reducing its capitalization by about $ 100 billion and leaving the first place to Microsoft, which now weighs $ 2.450 billion. The banking sector, on the other hand, is supported by the surge in inflation and the rise in bond yields. That of the German 10-year Bund, which serves as a benchmark in Europe, has risen by almost 4 basis points to -0.09%, while that of the US bond of the same maturity has risen above 1, 6% before returning to around 1.58%. BNP Paribas takes 0.5%. The bank, which published quarterly above expectations, confirms that it is counting on sustained growth in its income and on a low risk rate. It will also launch, from November, a share buyback plan in the amount of 900 million euros. Agricultural credit appreciates 0.7% and Societe Generale 1.7%.
Safran gains 1.8%. The engine manufacturer has raised its cash generation target for the current year after recording an increase in revenues in the third quarter, thanks in particular to a jump in its service activities. The group now expects to generate free cash flow in excess of 1.5 billion euros, whereas it previously planned to generate cash flow ” superior To that of 2020, which was 1.07 billion euros.
EssilorLuxottica climbs 2.5% after signing a record. The eyewear manufacturer has again raised its financial objectives for 2021, after strong growth in its turnover in the third quarter, thanks in particular to good sales dynamics in North America and the integration of the Dutch optical distributor GrandVision.
Saint Gobain loses 2.8%. The building materials group announced an increase in turnover in the third quarter, as it decided to prioritize prices over volumes, thus offsetting inflation in raw material and energy costs. . JPMorgan analysts point out, however, that the group will have to increase its prices by 9% to counter the impact of rising costs throughout the second half of the year.
Ubisoft is up 4.1% despite the lowering of its forecast of “net bookings” (net orders) for its financial year at the end of March 2022. Anticipated by analysts, this warning will have no impact on profits of the group, the video game publisher having confirmed its objective of operating profit. Oddo BHF has also raised its recommendation from “neutral” to “outperformance” and its target price of 50 to 57 euros.
Air France-KLM rises by 3.4%. The airline posted a gross operating surplus (EBITDA) of 796 million euros in the third quarter, against a loss of 442 million a year earlier, which allows it to expect a positive EBITDA this year. The turnover increased by 81% to 4.57 billion, against 4.48 billion anticipated by the market.
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