After a 2% jump on Friday, the Bedroom 40, continuing its momentum, was awarded 0.93%, to finish at 6,091.91 points, in a trading volume still summer of 2.4 billion euros. The Parisian index was lifted by reports that China is pressuring banks to facilitate financing for the country’s major property developers. It also benefited from the increase in TotalEnergies (+2.34%) and the banking compartment. As for the oil major, it benefited from the global rise in energy prices, both black gold – the barrel of Brent from the North Sea rose by 4.4% to 105.45 dollars – and gas, against a backdrop of heat records in Europe and intensive use of air conditioning systems. The seconds are driven by their counterparts Bank of America and Goldman Sachs, which have just released their results as of June 30.
The scenario for the banks is now known: retail banking benefits from the rise in interest margins, but the granting of new mortgages declines under the effect of the rise in interest rates and the risk of recession, while market volatility and geopolitical tensions are weighing on mergers and acquisitions and investment banking, while encouraging trading activity. Bank of America (+0.6%) and Goldman Sachs (+2.8%) fit perfectly into this pattern. But what is interesting is the way in which the different are preparing for the crisis. When JPMorgan Chase, Wells Fargo and Goldman Sachs increased their provisions for credit losses by $428 million, $235 million and $667 million respectively during the quarter, Bank of America, the second-largest U.S. bank by assets, released $48 million in reserves, compared to $2.2 billion a year earlier. The rest of the week will shed more light on the strategies of American groups in the face of the economic turbulence that is looming. A total of 75 S&P 500 companies will be in action by Friday. closer to us, Alstom will open the ball tomorrow by publishing its orders and sales for the first quarter of 2022-2023.
The railway equipment manufacturer will be followed by Publicis and Thales, Thursday. The penultimate session of the week will be intense. On that day, operators will watch for the return to service of the Nord Stream 1 gas pipeline, which has been shut down since July 11 for maintenance operations. Several European officials fear that Moscow will use the weapon of gas as a means of pressure in the face of sanctions linked to the war in Ukraine. It’s necessary ” prepare for a scenario where we have to do without Russian gas entirely “, alerted the French head of state Emmanuel Macron during his speech on July 14.
Will the ECB strike harder?
A cut would be one more thorn in the side of the European Central Bank, which must make its monetary policy decision on Thursday at 2:15 p.m. The institution has prepared the market for a 25 basis point rise in key rates, the first in eleven years, but shouldn’t it hit harder? ” Very late in the normalization of its monetary policy, the ECB cannot wait any longer. Christine Lagarde, its president, should therefore adopt a hawkish tone, and finally take action, with a first rate hike of 50 basis points, contrary to the 25 basis points anticipated by the markets.believes Franck Dixmier, Global CIO Fixed Income at AllianzGI. It is indeed difficult to imagine spending the summer in negative rates when inflation continues to rise in the euro zone, with 8.6% in May and a peak still ahead of us. The fall of the euro against the dollar – which increases the prices of raw materials – is an additional argument for the Central Bank to demonstrate its determination. The ECB will also have to specify the contours of its “anti-fragmentation” tool, that is to say support for peripheral bonds, in particular Italian bonds, while the President of the Council Mario Draghi must address Parliament on Wednesday, after his resignation refused. by the Italian President.
Across the Atlantic, the market expects a “limited” tightening of US Federal Reserve rates to 75 basis points next week. This de-escalation of expectations, which were 100 basis points last Thursday, is essentially fueled by the comments of Governor Christopher Waller and St. Louis Fed President James Bullard, considered the most “hawkish” of the members of the committee of monetary policy and which favor a ¾ percentage point increase in the funds funds rate.
Solvay sees higher
Among other values, Solvay climbed 4.54%. The chemical group plans to raise its forecast for 2022 after a performance well above expectations in the second quarter.
The cable manufacturer Nexans gained 1.83% thanks to Societe Generale, which raised its opinion from “hold” to “buy”.
Finally, an association of employee shareholders and former employees ofEDF announced its intention to “introduce a criminal complaint with the constitution of a civil party” against the State for ” business distress “. The action remains suspended from trading at a last price of 10.22 euros until further notice and the State will announce its intentions on the nationalization of the electrician on Tuesday at the latest.
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