The Paris Stock Exchange (CAC 40) should be cautious, Thursday, October 20, at the opening, demotivated by the stock market decline on Wall Street and then in Asia, while investors welcome a new wave of company results in a deteriorated economic context. The futures contract for the star CAC 40 index gleaned 0.12% around forty minutes before the opening of the session. The Parisian rating had lost 0.43% the day before. After several sessions of gains, stock markets lost momentum on Wednesday, hesitating between optimistic corporate results and a macroeconomic environment still weighed down by high inflation which pushed bond yields higher.
The Fed’s Beige Book, released on Wednesday, two weeks before the US central bank’s next monetary meeting, depicted a slowing progress economy in the United States where a wind of “pessimism” is beginning to blow among entrepreneurs. “Price inflation remains high,” according to the survey. Inflation estimates raise fears of further rate hikes by central banks to stem the rise in the cost of living, largely attributable in Europe to the energy crisis.
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The leaders of the European Union meet Thursday and Friday in Brussels to try to finally find a common response to the surge in energy which is weakening European companies, threatened by competition in the United States or in Asia where tariffs are remained under control. “The stock market landscape will remain complicated in the weeks to come,” said Christopher Dembik, director of macroeconomic research at Saxo Bank.
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“Company results can bring a breath of fresh air in the short term”, he argues, “but in the medium term, the situation remains complex”. Investors remain hampered by tighter global financial conditions, anti-Covid restrictions in China, the geopolitical situation and disruptions in the energy market. They will look this Thursday at weekly unemployment claims and sales of existing homes in September in the United States.
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Values to follow
Hermes : the luxury group continued to experience “good momentum” in the third quarter of 2022, achieving 3.14 billion euros in sales, i.e. a jump of 32.5% over one year, driven by all businesses.
Pernod Ricard : the turnover of the French wine and spirits giant increased by 22% in the first quarter of its staggered financial year, placing itself above analysts’ expectations, driven by the increase in the price of its products.
TotalEnergies : the strike for wages was renewed Thursday morning at the Gonfreville refinery (Seine-Maritime) and at the Feyzin depot (Rhône), but is suspended on all the other sites, indicates Eric Sellini to AFP, national coordinator of the CGT for TotalEnergies.
CAC 40: the stock market benefits from a relief on gas, inflation in the line of sight