After losing up to 1.2%, the Paris Bourse reduced its losses in the wake of US index futures. American technologies such as Alphabet, Apple, Nvidia, Tesla or Netflix are progressing on the New York pre-stock market, giving hope for a rebound in the Nasdaq. The underlying sentiment is nonetheless weighed down by the high level of energy prices, which fuels doubts about the temporary nature of inflation.
« The markets are clearly concerned about inflation, and the main fear is the rise in oil prices and its consequences on results. [des entreprises] and growth ”, Summarizes Marija Veitmane, senior strategist at State Street Global Markets. And to add that these fears will not go away quickly. In addition, the decline in the ZEW sentiment index for German financial analysts and investors to 22.3 points in October, the lowest since the start of the pandemic, confirms that tensions on supplies and rising inflation hamper the recovery of the euro area’s largest economy.
At 2:30 p.m. on 40 lost 0.36% to 6,546.96 points in a business volume of 1.1 billion euros. The contracts futures December on American indices fluctuated between a gain of 0.2% for the Dow Jones and a gain of 0.5% for the Nasdaq 100.
Nervousness before bank results
Coal futures hit new records in China on Tuesday, as oil prices hold three-year highs of nearly $ 84 a barrel for Brent and nearly seven years for crude American WTI-grade lightweight, over $ 81.
The market is showing signs of nervousness ahead of the first third quarter earnings releases in the United States. JPMorgan, Morgan Stanley, Bank of America, Citigroup, Wells Fargo and Goldman Sachs must comply with the exercise between Wednesday and Friday. ” We expect very, very strong third quarter results, said Rebecca Felton, senior market strategist at RiverFront Investment Group on Bloomberg TV. But it’s the fourth quarter outlook that is making investors nervous », She specifies. Profits of S&P 500 companies are expected to grow 29.6% year on year in the third quarter, according to Refinitiv data as of last Friday.
EDF boosted by Emmanuel Macron’s “France 2030” plan
The markets also await Wednesday the figures of consumer prices in the United States, which will be followed Friday by those of retail sales and which could give indications on the calendar of “tapering” of the Fed. These statistics also risk rekindling the specter of stagflation, and in particular inflation, which is expected to remain above 5% for the fourth consecutive month.
Among cyclical stocks, Safran fell by 2.4%, whileAirbus and Thales bend by about 1%.
Veolia Environment takes 0.8%. Berenberg raised its price target on the share of the group of utilities and businesses from 30 to 35 euros.
EDF increased by 2.8%. France intends to acquire small modular nuclear reactors over the course of the decade, Emmanuel Macron announced on Tuesday during the presentation of the “France 2030” plan. These small reactors are one of the ten priorities of the investment plan, endowed with 30 billion euros.
Interparfums (+ 8.8%) leads the SRD, supported by an increase in the recommendation of Oddo BHF, from “neutral” to “outperformance” on the stock.
Sodexo gains 1.1%. Bernstein raised the title of the collective catering group from “market performance” to “outperformance” and raised its price target from 79 to 94 euros.
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